Posted on Thursday, March 25, 2010
The Protecting Tenants at Foreclosure Act (PTFA) was passed last May.
Frustrated with problmes getting modificatins and short sale approvals, many don't realize just how many things lendrs have been grappling with off of our radar screen.
Since the passage of PTFA servicers and lenders have had to gear up to comply. Urgent situations at tenant-occupied properties must be approached differently than those of a vacant REO property. Field service companies needed to create new methods for tenants to communicate with them for situations requiring immediate attention, such as faulty heating units and leaking roofs. Situations that previously could be handled the next day now need attention within hours.
Believe it or not, one of the greatest challenges has been identifying occupants with valid leases in the first place, and then and communicating heir options to them under the Act!
Another challnage has been blight code compliance. Historically, code-enforcement officers’ primary dilemma was discerning who the responsible party was when code violations arose. The relationships have now evolved to that of a partnership with stakeholders realizing they are fighting the same battle in stopping neighborhood blight.
On the horizon, HUD recently stated its intention to create a single conveyance system that will cover the entire country, P260, for managing FHA-insured properties with a single communication technology and one national Mortgagee Compliance Manager.