Smithtown, NY Maybe Heading For A Massive Abandoned House Cleanup

Derelict houses that generate a steady stream of complaints from neighbors about quality of life and endangered property values may soon be getting its much needed maintenance. The Town Board in Smithtown, New York, is considering a bill that registers all houses that are vacant, houses that have had their utilities shut off or are in foreclosures.

The bill aims to prevent foreclosure actions and push owners, who may be out-of-state banks or limited liability corporations, into doing regular upkeep or maintenance on their properties. Through this bill, it would make the regular scrutiny of Smithtown homes that have been sold due to foreclosure, a possibility.

The bill would authorize the town cleanup of the said properties and fine every registrant with $500 fee every six months, if they fail to provide a regular upkeep.

Limited Liability Corporations (LLC) owning a significant amount of vacant houses is one of the major problems in pushing the owners to regularly maintain their properties. According to Cathy Caillat, Smithtown’s assistant director of public safety, said that state records for those companies may not include enough information to contact anyone responsible for property maintenance.

Caillat also added that the only contact information on the LLC listed in state business records could be a law firm or accountant, and “they were not being forthcoming with the actual owner’s name and contact information”.

Hence, if the bill were passed into law today, the registry would require a name, phone number, email and mailing address for each property owner.

Smithtown along with some New York municipalities, including Babylon and Brookhaven have started to track homes that are in or at risk of foreclosure. Helene Caloir, director of the New York State Housing Stabilization Fund at Local Initiatives Support Corporation said that the town is showing a remarkable performance at responding to complaints and systematically figuring out the vacant properties and its owner.

With a promising outcome for the bill, Caloir cautioned the town officials to be extra careful in inadvertently registering elderly or frail people who might not be able to maintain their properties.

A wrongful listing could result in lawsuits against the town or banks

Because there were many homes of high value in Smithtown, banks issued first and second mortgages. But when the market crashes, many people lost their jobs … and their homes.

Much of the town’s vacancy problem can be traced to a wave of foreclosures after the 2008 financial crisis.

The moratorium on foreclosures and evictions for single-family homes for homeowner loans backed by Fannie Mae or Freddie Mac is set to expire Dec. 31. By then, foreclosure lawsuits and sales are resuming!

People who are affected will be defaulting on their mortgage. A number of people will be in default because they have stopped paying their mortgages. Some forbearance programs will require lump sum payments and fees that borrowers may not be able to pay due to the health-turned-economic crisis.

A wave of foreclosure filings could hit in the first quarter of 2021.

Interventions from policy makers are needed to avoid this from happening. Until then, people will need help to assess their situation and come up with a long term option for their homes. With extensive knowledge of working with the banks to get favorable outcomes for homeowners and passion to help people, Analytics Before Foreclosure is your go-to company. Call us today at 866-857-5405 and lets work together to create a solution that works for you and your family, before its too late.