Good News Related to Foreclosed Home Listings in Merced
There are two bits of good news related to foreclosed home listings in California’s Merced county and city. One is the compliance of banks with Merced City’s ordinance on the maintenance of properties in foreclosed home listings. Another is the increasing home affordability across Merced County.
Recently, Key Bank sent construction crews to the RiverStone subdivision in Merced City’s Bellevue to board up doors, windows and garages to abide by the city’s ordinance of maintaining properties in foreclosed home listings. Some of the homes were half-built; the others were already finished but still unsold.
The city was glad Key Bank complied even if the city ordinance will not become effective until July, after it gets the final vote next week.
But last year, the state of California has already enacted a law, SB1137, which authorized cities to impose fines on banks that allow properties in foreclosed home listings to deteriorate. The law also ordered lenders across the state to meet with troubled homeowners before filing foreclosure cases.
Under the ordinance created by the city, banks are given 14 days to clean a foreclosure property after their notification and one month to complete repairs. Violators will pay the city a maximum of $1,000 for each day a foreclosed property and its yard are not cleaned or maintained.
David Gonzales, development services head of Merced City, said the ordinance was created to force neglectful owners to give attention to their abandoned properties which are causing blight and lowering property values in neighborhoods.
Last year, approximately 120 cases related to foreclosed home listings were filed with code enforcement officers and added to their regular case load.
Meanwhile, in Merced County, affordability levels have improved further, according to national statistics released recently. Families earning the median income in Merced County can afford to purchase over 80 percent of homes in the area’s market.
In 2005, only three percent of homes in the county were affordable to families earning the area’s median income. Many families could not afford to realize their dream of owning a house.
According to the national data, Merced County is among California counties with the highest affordability levels, along with San Joaquin and Stanislaus counties.
But improved affordability levels have also downsides. Lower home prices decrease city and county finances as tax revenues decrease. Home builders cut down jobs, adding more unemployed workers to lists of jobless people claiming unemployment benefits.
Nevertheless, improved home affordability increases consumer confidence and entices more people to buy from foreclosed home listings.
