Abandoned properties could worsen the hurricane season - South Florida Business Journal:

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More than 101,000 residences in South Floridaz sat empty for three months or more as of according tothe . Many of these likelyg were bank-owned, in the process of foreclosure or the assetxof cash-strapped developers. In the even of a hurricane warning, many experts doubt most lenderse would have the coordination and capabilitgy to fortify those homes with shuttersor boards. Sincd banks almost never respond to homeowner associationn complaints about poor conditions atabandoneds bank-owned properties, they probably won’t be proactive in protecting thesse properties from a hurricane, said Ken Direktor, an attorney at Fort Lauderdale-basedf who represents numerous homeowner associations.
Most banks and mortgage-servicinhg companies are overwhelmedwith foreclosures, and can’t effectivelt manage them all, he said. “I would be shockex if banks mobilize in front of a Direktor said. “A hurricane now would be absolutely catastrophic. The negative effect on the community would bemultipliecd exponentially.” Bill Hardin, director of real estatee programs at , said foreclosures held by mortgage-backed securitiexs would be must vulnerable. He doubts that most MBS servicing companies have the capabilities to mitigate propert losses beforea hurricane.
If there’sa a pending foreclosure on a home and thebank hasn’ft taken possession of it, then the lende r can’t legally enter the property and secure it. A homeownerr or renter still living there mightf protect the home fortheir safety, but an abandone home facing foreclosure would be less likely to have a Some condo associations have the ability to enter abandoned homes and secures them, but homeowner associations do not, said Donnas Berger, executive director of the Plantation-basedd .
has a plan for hurricanes that includese contracts with property management companies and bank employeez to make sure propertieseare storm-ready, said Nancy Norris, a spokeswoman for the which also services mortgages for other lenders. “When there is a threat, we have a businessx resiliencyteam that’s always on top of emergency she said. “We are confident that we will get the job When a homeowner stops paying a mortgageand insurance, or when a propertty becomes bank-owned, the lender covers the property throughb a blanket insurance policy called forced coverage. Theses expensive policies cover the outstandingmortgage amount, regardless of the valu of the property.
These policies usually don’f require the bank to do anything to protect a property fromstormj damage, said William Berk, an attorney who representws insurance companies as a partner with Corapl Gables-based . But, the aftermath of a hurricane could providw opportunities for savvy investors to buy damaged homeas from banks on the repair them andresell them, said Petefr Zalewski, CEO of Bal Harbour-basef . “I can’t imagine a lender repairintg a property damaged by a hurricanee beforeselling it,” he said. “For a it could be a catastrophe, and for it could be a great opportunity.” THE DETAILS: Nobody’s home Palm Beacyh County: 36,348 residences, or 5.
3 percentf Broward County: 37,707 residences, or 4.6 percent Miami-Dad County: 27,700 residences, or 2.9 percent Source: U.S. Postal Servic e