Town officials in Brookhaven are moving forward to take action against financial institutions which have failed to maintain hundreds of homes and other structures they have taken title to in foreclosure lawsuits. During the past twelve months, town workers have been forced to board up more than three hundred homes that have fallen into disrepair which are owned by financial institutions as a result of foreclosure proceedings. Town of Brookhaven Supervisor Edward P. Romaine, recently stated “banks let the houses fall apart; did not adequately maintain them and didn’t stay in touch with the local government.”
Foreclosed Homes Devalue Their Neighbors’ Property
It is estimated when a home goes into foreclosure and falls into disrepair it has a negative financial impact on the surrounding homes of approximately $10,000 to $20,000. In addition, vacant homes attract drug dealers and prostitutes.
Property Registration Law
The Town of Brookhaven is in the process of passing a property registration law related to vacant homes. The statute would have a registration fee of $100 for a home or building which has been vacant for less than a year. The failure of financial institutions to comply with this regulation would cost them between $1,000 and $15,000 in fines. The statute would also allow the Town of Brookhaven to place liens on vacant homes and buildings for maintenance work the Town is forced to do. This maintenance work would also include maintaining the property, cutting the grass and trimming trees.
Councilwoman Jane Bonner from Coram has taken the position banks should be held accountable for homes they have taken back in foreclosure. She maintains a strong position it is not the government’s responsibility to maintain property owned by financial institutions.
Conclusion
Foreclosures not only remove families from their homes. They have a negative effect on the surrounding homes and create blights in the neighborhood if the foreclosed homes are not maintained.
