With banks, mortgage companies and mortgage servicers sometimes given as little as 10 days to register vacant houses in foreclosure or abandoned status, it’s imperative for them to have the tools to quickly and accurately monitor the more than 2,000 Vacant Property Registration Ordinances (VPROs) currently enforced in the United States.
With that in mind, more and more of those in positions of legally responsible property ownership are turning to industry experts like PRS to both meet and maintain property registration compliance. In doing so, they save themselves time, money in the long run, and avoid potential fines, penalties and even civil or criminal citations.
The Power of OTR
Along with its extensive Community Ordinances & Registration Engine (CORE) data base, PRS utilizes a sophisticated Obligation to Register (OTR) Tool Kit that tracks changes in our clients portfolios such as foreclosure and vacancy status. This is done on a daily basis to ensure we are meeting the requirements of each ordinance and register timely.
Given the increasingly tight time lines for compliance, the OTR Tool Kit helps PRS serve its property registration clients with critical and cost saving information that reduces the risk of non-compliance while also managing the entire registration process through the entirety of the loan/default status.
With the default and foreclosure resolution timeline sometimes taking up to two years to complete, the OTR Tool Kit and other PRS resources save clients laborious amounts of time normally taken for manual internal compliance review and significantly lowers the risk of missing registration deadlines, renewal deadlines as well as monitoring for potential code violations depending on various ordinance language.
The OTR Tool Kit specifically monitors and tracks how an individual property or an entire portfolio of properties might be affected by a number of “triggering events” associated with the foreclosure process, among them:
- The requirement to register when a property initially goes into default.
- The potential requirement to register when the property is in default AND vacant.
- Requirement to register when First Legal Action is filed in the foreclosure process.
- Requirement to register when First Legal Action is taken AND the property is vacant.
- Or, all of the above. Ordinance registration requirements can come in as little as 10 days once a property goes into foreclosure and/or becomes vacant. Other ordinance registration requirements kick in after 30 or 60 or 90 or 180 day periods depending on the local government language of the VPRO. OTR also tracks individual VPRO requirements that ensure portfolio properties meet existing building code standards, reducing further fiscal liability on the form of code enforcement violation fines. The OTR Tool kit also monitors various VPRO maintenance requirements and other specifics that deal with potential fines for public health or public safety issues that are often associated with foreclosed and vacant properties, especially if they remain in that status for extended periods of time. Each of these capabilities saves responsible property ownership parties both time and money. Property registration clients quickly come to realize that timely registration compliance usually translates to a nominal registration fee between $150-$200 per property, but costs can balloon into the thousands of dollars per year per property for failure to register, failure to renew in a timely manner, or missing or neglecting other VPRO requirements.
Meeting Specific Registration Obligations
PRS also puts the OTR Tool Kit to work on behalf of property registration clients to meet exact obligatory specifications regarding the very issue of “Obligation” and follows through by communicating with clients in order to help determine:
- How many days a property is empty before it is determined to be vacant.
- The determination of the exact initial vacancy registration fee dependent on each local government VPRO fee structure.
- Determination of renewal vacancy registration fee and calendar registration anniversary date for renewal.
- Identifies potential fines and amounts that could be imposed on legal property ownership for failure to comply with registration requirements.
- Identifies potential liens that may be imposed on legal property ownership for failure to register and maintain registration status.
In numerous ways, PRS has the tools and resources to help banks, mortgage servicers and other legally identified property owners a time and money saving approach of meeting property registration compliance with significant economies of scale. We provide a simple, efficient and affordable way for you to meet your property registration obligations. For more information we invite you to visit our web page or give us a call at (321) 428-0628.