PHOTO: Gov. Cuomo last week announced that two additional mortgage companies have signed on to combat so-called zombie properties. File Photo
They have been a blighted, familiar sight over the past three years in the neighborhoods that were hit the hardest by the financial crisis of 2008 and Superstorm Sandy: vacant and abandoned edifices commonly known as “zombie properties.”
The state Legislature this year has pledged to fight the scourge of these buildings which can often cause significant economic damage to the surrounding community. In May, Gov. Andrew Cuomo announced that 11 banks, mortgage companies, and credit unions representing nearly 70 percent of the New York market will adopt a set of best practices to help combat zombie properties.
Last week, Cuomo added two additional mortgage companies to that list—First Niagara and Carington Mortgage.
Under these best practices, the banks and mortgage companies will regularly inspect properties that fall into delinquency to determine if they are vacant and abandoned, and make sure that those properties are safe and properly maintained, among other measures, Cuomo said. The banks and mortgage companies will also report properties determined to be vacant and abandoned to a state registry that will be developed by the Department of Financial Services, which will share that information with local government officials. The department will work with those officials to address and escalate any concerns about maintenance with the bank or mortgage company that is servicing the loan.
“Ensuring abandoned properties do not fall into disrepair not only protects neighborhoods from blight, but also shields homeowners from having to contend with the falling property values, public safety issues and increased taxpayer costs associated with having these zombie properties in their community,” Cuomo said. “I applaud [First Niagara and Carrington Mortgage] for standing with us to protect the American Dream for New Yorkers all across this state.”
Cuomo called zombie properties “a significant problem throughout New York State.” They become safety hazards that can attract an unsavory element, and create serious taxpayer expenses for affected communities.
“The influx of zombie properties in our communities following the financial crisis presents both a danger to local populations and to the long-term health of the mortgage market,” said Anthony Albanes, acting superintendent of state Financial Services. “These important actions are an immediate and crucial part of repairing that damage as we continue to pursue additional legislative reforms. We look forward to continuing to work with local officials, mortgage companies, and other stakeholders in addressing the vital problem of zombie properties.”
By Michael V. Cusenza
michael@theforumnewsgroup.com
