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Photo courtesy of Sterling Heights
Office of Building Services
Neglected foreclosed homes in disrepair include this one on Warwickshire.

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Sterling intensifies focus on neglected foreclosed homes

By Cortney Casey
C & G Staff Writer

STERLING HEIGHTS — From overgrown grass and peeling paint to broken windows and stagnant pools, Mike Bartholomew and the Sterling Heights Office of Building Services have seen it all when it comes to unkempt foreclosed homes.

Last summer, one abandoned house with an in-ground pool was “so dilapidated, there were trees growing in the pool itself,” recalled Bartholomew, Sterling’s building official, city development director and assistant city manager. “There was actually a 6-foot tree growing in the pool.”

With foreclosures now commonplace, Sterling Heights is encountering increasing numbers of neglected homes, and the city is stepping up efforts to confront the problem.

In early July, armed with a list of addresses, ordinance officers began a continuous rotation of stopping by foreclosed homes, checking their condition in hopes of correcting issues before they get out of hand.

Years ago, cities rarely had comprehensive information on foreclosed houses because such occurrences were rare, but that information has since become easier for officials to access, said Bartholomew. Sterling Heights began compiling detailed foreclosure data about a year ago, “so we have a good running list of what’s going on,” he said.

Councilman Joseph Romano, a Realtor of 38 years, said the entire City Council is behind the initiative.

“We all agree: We want to stay proactive on this,” he said.

By intensifying the foreclosure focus, they hope to put brokers —who typically assume responsibility for maintaining the property from asset managers — on notice, said Romano.

“It’s very, very simple,” he said. “They clean it up, or we clean it up, and we put a lien on the property.”

Bartholomew said they have sympathy for families who have lost their homes, but it’s the city’s obligation to the rest of the taxpayers to maintain property values.

He said his office fields hundreds of calls each week from residents reporting blighted houses in their neighborhoods.          

According to Romano, the good news is that Sterling Heights’ foreclosure rates are “very miniscule” compared to surrounding cities — he reported about 137-150 active cases as of early July — and those homes typically only linger on the market for three to four weeks before selling.

The bad news: The sale process can take an additional 90 days, during which time brokers, who often have dozens of vacant homes to maintain, sometimes cease efforts to keep up the houses, he said.

Bartholomew said neglected pools and yards represent the most common problems.

“It starts with the grass, almost always,” he said. “That’s the first sign that something’s going on.”

Neglect issues sometimes begin before a house even goes into foreclosure, as homeowners begin to fall behind on payments, said Barthol-omew.

Some residents simply disappear, leaving everything — including food, clothing and personal effects — behind, said Romano. In other cases, they gut the entire structure on their way out, taking cabinets, light fixtures, etc., he said.

“These people just walk out,” said Mayor Richard Notte. “A lot of people really don’t know what’s going on with these foreclosures.”

For approximately six years, Sterling Heights has abated nuisance properties through an Ordinance Board of Appeals process, which Bartholomew said is more effective than bombarding residents with a barrage of unheeded notices and violations.

Up until two years ago, the board dealt primarily with occupied homes in disrepair; now, neglected foreclosures comprise the bulk of the group’s work, said Bartholomew.

If the city has to step in, whoever is responsible for the home faces hefty fees. Besides the cost of the actual work, which can range $2,000-$4,000 in the worst cases, there’s a $185 ordinance board hearing fee and a 25 percent administrative fee covering the ordinance officers’ involvement, legal work and mailing costs, said Bartholomew.

If the bill goes unpaid for 30 days, an additional 5 percent late fee is tacked on and the charges are rolled onto the tax bill, incurring an extra 17 percent fee, he said. If the taxes aren’t paid, the city places a lien on the property, he added.

The problems continue to compound if the lien is overlooked prior to closing with new owners. Bartholomew said title companies are accustomed to contacting Macomb County to verify whether liens exist, but there can be lag time between when the city initiates repairs and when the lien shows up at the county level.

In those cases, new owners may receive a tax bill peppered with fees. Bartholomew said he spends a hefty chunk of time negotiating deals between the brokers, title companies and new owners — and the title companies typically get saddled with the costs.

Romano said Sterling Heights has contacted the Board of Realtors for Macomb, Oakland and Wayne counties, urging them to check with the city as well as the county for potential liens, and keep up maintenance on the foreclosed houses.

“We are in different times,” said Bartholomew. “A different set of rules now applies.”

Bartholomew said he’s confident that the recently launched program will help generate awareness and keep neighborhoods in good shape. But with nearly 40 square miles to cover, he said ordinance officers can’t possibly monitor all of the problematic houses without assistance.

“We need resident participation,” he said, urging neighbors to dial (586) 446-2360 to report neglected homes in their subdivisions.

You can reach Staff Writer Cortney Casey at ccasey@candgnews.com or at (586) 498-1046.


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