• Lisa Simpson
• Jul 28,2010
• In: Foreclosure

Clark County Foreclosed Houses

Like hundreds of other municipalities Clark County in Nevada is facing severe financial problems. The crunch in the budget has caused innumerable layoffs, service cuts and addition of many types of fees. In a scramble for revenue many changes are being made as regards penalties and fines relating to housing code violations. But this will negatively impact on the housing market dealing with foreclosure sale. The Clark County ordinance has made it more difficult for buyers to invest in foreclosed houses.

When the owner of a residence faces monetary problems it becomes difficult for the person to manage the maintenance of the estate. If foreclosure seems unavoidable then there is no reason for the borrower to try and keep the unit in good condition. Thus when the occupant exits and services are cut off the lawns shrivel and the house begins to look derelict and forlorn. In Las Vegas the neglect of houses is taken to be a violation of code and therefore liable to fines.

When this happens the first step is sending of a notice to the house owner asking him or her to rectify the fault. After a brief period of grace, fines to the tune of $100 per day are levied for the next ten days. For the subsequent twenty days the fine goes up to $500 for each day and then it reaches the peak of $1,000 per day after a period of thirty days. These fines have always been there but with a new amendment coming to force from 1st July the going is going to be tougher for house owners. This will only add to the problem of battling foreclosures.

In a naked grab for money the Clark County Commission passed the amendment to the code that made the liens relating to code violation ‘non-extinguishable’. It means that till now when the foreclosure process is completed all liens are cancelled except some tax liens. In Nevada the home owners association’s liens are collected through monthly assessments after increasing it. But by stating the term ‘non-extinguishable’ the liens related to code violations are not erased out by the foreclosure process.

Since it takes months for the process to be completed then it is quite natural for the previous owner to have piled up code violation liens. If it is $1,000 per day for a minimum of six months taken for the foreclosure then the fines could become more than the worth of the property!

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