The City Council is trying to figure out how to deal with more than 8,000 foreclosed properties saturating the city.

Staff from the city’s Code Compliance Division this afternoon floated some options they hope will help. During a discussion with the City Council this afternoon, the department asked council members to consider new laws that would push more of the responsibility for maintaining the properties on the banks that hold the mortgages.

City officials want Cape Coral to follow Coral Springs and North Lauderdale, which have started to hold banks responsible for maintaining property from the moment foreclosure proceeding begin. In Cape Coral, banks are not held culpable until the foreclosure proceedings are finished – a process that could drag on for months.

“The foreclosure process is taking a long time because of the sheer volume of them,” said City Attorney Dolores Menendez. “And banks are not rushing to in quickly to foreclose on them; they are not looking to hold many, many properties.”

While a foreclosure is working its way through the courts, the property is often left neglected, allowing it to deteriorate into an eyesore.
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During a meeting with the city’s staff this afternoon, Councilwoman Dolores Bertolini suggested the city also look to builders and developers for some type of a deposit on new construction.

“My thought is there could be some kind of a bond or security deposit we could put on projects so that if someone walks away at lease we have the bond to cover the cost of finishing the project or demolishing the project,” Bertolini said.

Councilman Tim Day suggested the city work with the local power company, LCEC, to shut power off on properties facing mounting fines from the code compliance division.

The city’s staff also offered a plan to extend an amnesty program that will allow property owners to pay less on delinquent code violation fines.
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