Some areas of the nation are facing still-growing foreclosure rates. In MD, it’s even higher. One county in Maryland is hoping to address many of the associated problems with a payment. This very same bill would give the county the right to charge property owners criminally if their home falls into disrepair.
Foreclosure level in MD large
MD has been facing large foreclosure rates since the housing collapse in 2008. Prince George County in Maryland has had one foreclosure for every 457 homes thus far in 2011. In Prince George County, the property value is decreasing while inventory goes up. This is mainly because now of the homes are being maintained well. Not only does this lead to urban blight, Prince George County tax revenues are falling.
Foreclosure fee idea brought forth
State lawmakers have been listening to a lot from Prince George County. It hopes that something can be done with the homes not being maintained and soon. Foreclosure costs on foreclosed homes of $75 a year would be a payment charged by the county. In order to pay contractors to clean abandoned houses, the money would be put in a county fund. The short term loan of foreclosed would have to pay just one more payment. Inspectors would be sent to foreclosed homes by the county.
Reason the reason why foreclosure fees are not likely
Foreclosed homes would be taken care of with a short term personal loan for instance foreclosed fee would help property values improve. It would be just as hard to get the fee as anything else though. It was already stated that the homeowner would not be responsible for the $75 payment. This was mentioned by the county. That just means that a per-house payment would have to be paid by the banks owning the properties and leaving them abandoned instead. The county would have to find a way to make sure that the fee gets paid. It may be done by simply creating a civil misdemeanor offense for not “keeping a property up to neighborhood standards.”
Articles cited
Washington Examiner
washingtonexaminer.com/local/maryland/2011/02/pg-council-wants-charge-fee-foreclosure-cleanups
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