Abandoned properties could worsen the hurricane season - South Florida Business Journal:

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More than 101,000 residences in Southy Florida sat empty for three months or more asof March, accordinvg to the . Many of these likely were in the process of foreclosure or the assetsof cash-strapped developers. In the event of a hurricaned warning, many experts doubft most lenders would have the coordinatiojn and capability to fortify those homesd with shuttersor boards. Since banks almost never respond to homeowner associationm complaints about poor conditionws atabandoned bank-owned properties, they probably won’t be proactive in protecting these properties from a said Ken Direktor, an attorney at Fort Lauderdale-baseds who represents numerous homeowner Most banks and mortgage-servicinfg companies are overwhelmed with foreclosures, and can’t effectivelyt manage them all, he said.
“I would be shockedc if banks mobilize in front of a Direktor said. “A hurricane now would be absolutely catastrophic. The negative effect on the community woulr bemultiplied exponentially.” Bill director of real estate programs at , said foreclosuress held by mortgage-backed securities woulsd be must vulnerable. He doubts that most MBS servicingh companies have the capabilities to mitigats property losses beforea hurricane. If there’as a pending foreclosure on a home and thebank hasn’yt taken possession of it, then the lender can’tr legally enter the property and secur it.
A homeowner or renter stillk living there might protect the home for their but an abandoned home facing foreclosure wouled be less likely to havea guardian. Some condo association have the ability to enter abandoner homes andsecure them, but homeowner association s do not, said Donna executive director of the Plantation-based . has a plan for hurricanew that includes contracts with properthy management companies and bank employeeds to make sure propertiesare storm-ready, said Nancy Norris, a spokeswoman for the which also services mortgages for other lenders. “Whe n there is a threat, we have a business resiliencgteam that’s always on top of emergency she said.
“We are confident that we will get the job When a homeowner stops payintg a mortgageand insurance, or when a propertt becomes bank-owned, the lender covers the property througbh a blanket insurance policy called forced These expensive policies cove the outstanding mortgage amount, regardless of the valure of the property. These policies usually don’t require the bank to do anythin to protect a property fromstormk damage, said William an attorney who represents insurance companiexs as a partner with Coral Gables-based .
But, the aftermathj of a hurricane could provide opportunities for savvy investorsz to buy damaged homes from banks onthe cheap, repair them and reselol them, said Peter Zalewski, CEO of Bal Harbour-based . “uI can’t imagine a lendere repairing a property damaged by a hurricane beforesellinbg it,” he said. “For a neighborhood, it could be a and for investors, it could be a greaty opportunity.” THE DETAILS: Nobody’s home Palm Beach County: 36,348 residences, or 5.3 percen t Broward County: 37,707 or 4.6 percent Miami-Dade County: 27,70o residences, or 2.9 percent Source: U.S.
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