City Council to Consider Foreclosure Ordinance

The Fountain Valley City Council will consider an ordinance Tuesday night that would require registration and maintenance of foreclosed properties in the city.

According to a report by city staff, 240 properties in Fountain Valley are in the foreclosure process, which averages about 320 days in California. The ordinance would require lenders to complete an inspection before putting a property into foreclosure and then pay a $100 annual registration fee to the city within 10 days of issuing a notice of default. The fee would be paid until the foreclosure process is completed, or until the property owner is out of default.

About 100 cities throughout the state have adopted or are in the process of drafting similar ordinances, according to the report. In Fountain Valley, the city has dealt with various problems stemming from foreclosed properties, including squatters in foreclosed commercial buildings and scams involving properties being used to collect rent.

The ordinance would also require lenders to maintain foreclosed properties until the process has been completed, including yards, pools and the placement of "No Trespassing" signs at the property. The lender would also have to provide the city with 24-hour contact information for a property management company as well as provide regular inspection reports on the property.