This chapter shall be known and designated as the "Registration,
Maintenance and Security of Properties in Foreclosure Ordinance."
(Ord. 1081 § 1, 2013)
The purpose of this chapter is to establish a property registration
program as a mechanism to protect neighborhoods from becoming blighted
through the lack of adequate maintenance and security of properties
due to foreclosure.
(Ord. 1081 § 1, 2013)
The following definitions shall govern all terms of this chapter
and shall supersede any term otherwise defined in this code:
"Abandoned"
means any property that is vacant and is under a current
notice of default and/or notice of trustee's sale, and/or any property
which has been the subject of a foreclosure sale, trustee sale or
judicially authorized sale where the title was retained by the beneficiary
under its deed of trust upon the conclusion of the foreclosure and
any property transferred by the trustor under a deed in lieu of foreclosure
and/or sale to either the beneficiary, the trustee or to any authorized
entity as approved by the beneficiary.
"Agent"
means and refers to a trustee and any other person authorized
to act on behalf of a beneficiary with respect to a mortgage loan
account, or real property which is pledged to the beneficiary as security
to a mortgage loan, and for the purposes of this chapter, the term
"agent" includes any person authorized to act on behalf of a beneficiary
who has completed a foreclosure of property from and after the time
such beneficiary has acquired title to the property which was formerly
secured by a deed of trust in favor of such beneficiary when the agent
is undertaking any work or responsibility for the former beneficiary
with respect to the ownership, maintenance, use or other disposition
of such property, including any affiliate of such a beneficiary which
acquire title to such property either, at the time of foreclosure
(or recordation of a deed in lieu of foreclosure and/or sale).
"Beneficiary"
means a lender under a promissory note to pay money secured
by a deed of trust on property. The word "beneficiary" as used in
this chapter means and includes any assignee or successor to such
beneficiary, whether such assignee or successor acquires its interest
in the beneficiary's promissory note either before a notice of default
is recorded on the property securing the obligation payable to the
beneficiary or after a notice of default is recorded. In the event
that a property may provide security for the loan or obligation of
more than one beneficiary, the beneficiary who causes its notice of
default to be recorded shall be responsible for registering the property
as set forth in this chapter.
"City"
means the city of Pico Rivera.
"Deed of trust"
means an instrument by which title to real estate is transferred
to a third party trustee as security for a real estate loan. This
definition applies to all deeds of trust regardless of priority.
"Default"
means the failure to fulfill a contractual obligation, monetary
or non-monetary.
"Distressed"
means a property that is under a current notice of default
and/or notice of trustee's sale or has been foreclosed upon by the
trustee or has been conveyed to the beneficiary/trustee via a deed
in lieu of foreclosure/sale.
"Foreclosure"
means the process by which a property, placed as security
for a real estate loan, is sold at auction to satisfy the debt if
the trustor (borrower) defaults.
"Local"
means within fifty road/driving miles distance of the subject
property.
"Out of area"
means in excess of fifty road/driving miles distance of the
subject property.
"Property in foreclosure" or "property"
means any property upon which a notice of default has been
issued by a lender, mortgagee, or beneficiary of any deed of trust,
or real property that has been the subject of a foreclosure sale where
the title was transferred to the beneficiary of a deed of trust involved
in the foreclosure and any properties transferred under a deed in
lieu of foreclosure and/or sale. "Property in foreclosure" or "property"
also means any unimproved or improved real property, or portion thereof,
situated in the city of Pico Rivera and includes the buildings or
structures located on the property regardless of condition.
"Trustee"
means the person, firm or corporation holding a deed of trust
on a property.
"Trustor"
means a borrower under a deed of trust, who deeds property
to a trustee as security for the payment of a debt.
"Vacant"
means a building/structure that is not legally occupied.
(Ord. 1081 § 1, 2013)
An annual foreclosed properties registration fee, as prescribed in Section
8.65.100, shall be paid to city at the time of registration. The beneficiary or its agent shall annually renew a registration of each property which the beneficiary has previously registered with the city under this chapter, and in which such beneficiary retains either an equitable or legal interest as of the first anniversary of the registration of such property with the city. The beneficiary or its agent shall re-register the property on forms authorized by the city. Registration fees shall not be prorated.
(Ord. 1081 § 1, 2013)
The duties/obligations specified in this chapter shall be joint and several among and between all trustees and beneficiaries and their respective agents. The provisions of this chapter as described herein shall apply to properties subject to this chapter. Should a property be deemed a public nuisance, hazardous, or substandard by the city, the city may initiate the abatement procedures described in Title
8, Chapter
8.16, Article I against the beneficiary and/or trustee.
(Ord. 1081 § 1, 2013)
The community and economic development department shall manage
the implementation, coordination, documentation, administration and
enforcement of this chapter. Nothing contained herein shall be construed
to limit the city's authority to contract or utilize third parties
in the enforcement and implementation of this chapter.
(Ord. 1081 § 1, 2013)
It is unlawful for any trustee, beneficiary or agent of a beneficiary
to pass on any costs, fees or fines imposed under any provisions of
this chapter to any trustor, subsequent bona fide purchaser or transferee
of a property, either as a condition of sale or transfer, or included
as a cost or fee in escrow.
(Ord. 1081 § 1, 2013)
Nothing in this chapter shall relieve any beneficiary or trustee
of the duty to comply with any and all other applicable statutes,
regulations, ordinances, codes, and laws regulating property maintenance,
zoning, or building construction. Compliance with this chapter shall
not relieve any beneficiary or trustee of any legal duties under such
laws.
(Ord. 1081 § 1, 2013)