Pacific Southwest Association of REALTORS

PSAR has worked with city staff to have the following proposed changes made to the ordinance:

1) Exemption of all properties being sold in a short sale or regular sale.

2) Elimination of the $70 registration fee for foreclosed properties.

3) Elimination of the need to register properties already registered by the bank through MERS*

*Most banks are already using this system.

PSAR’s still has the following issues with the ordinance:

Distressed borrowers should not be required to pay for City Staff time spent noticing a property being sold in a short sale.

The intent of this ordinance is to motivate banks to maintain abandoned property. Property being sold in a Short Sale is not abandoned and should never have received fines in the first place. Short sales are difficult transactions to close. Coming up with an additional $200 to $2000 may either force a property into foreclosure or cost a real estate agent who may be forced to pay this money to sell a home and avoid foreclosure.

PSAR is concerned that this ordinance sets a dangerous precedent by encouraging banks and hard money lenders to take property from residents prior to foreclosure.

Banks are not authorized to take possession of property prior to foreclosure. Consumer protections were built into California state law which requires the bank to go through a legal procedure to take possession of private property. By entering a property and changing the locks on the property to secure it, the banks are being directed by the city to eliminate these consumer protections. Due to one circumstance or another, some of the properties may not be occupied at the time of inspection. Home owner have been locked out of property and agents have had lock boxes and signs removed as a result of this ordinance. The ordinance should be in line with state law and enforced at the trustee sale.

The fines are punitive to high and unfair.

Chula Vista is fining thousands of dollars for unlocked gates and brown lawns. These fines are punitive and are not addressing blight in our community. The fines should be in line with the infraction. It is unfair to put these burdens on Chula Vista property. The City needs to be more reasonable.

Here are links to what Chula Vista Staff is proposing:

Ordinance

Policy

To express your thoughts or concerns on this issue, the Chula Vista City Council can be reached at: (619) 691-5044

or by email at the following addresses:

Mayor Cheryl Cox cherylcox@chulavistaca.gov

Deputy Mayor Rudy Ramirez rramirez@ci.chula-vista.ca.us

Councilmember Steve Castaneda stevecastaneda@chulavistaca.gov

Councilmember Pamela Bensoussan pbensoussan@chulavistaca.gov

Councilmember Mitch Thompson mthompson@chulavista.gov