Missouri: Local Registration Ordinances re Vacant and Foreclosure
Properties
by Douglas A. Hick
South & Associates, P.C. – USFN Member (KS, MO)
Four Missouri
cities have ordinances requiring property owners and lenders to register
properties that are vacant, in the process of being foreclosed, or that
have been foreclosed. Although most of the Missouri ordinances have
similar requirements and some appear to be modeled after each other,
there are differences among them. The ordinance passed by the Kansas
City is the most onerous, but online registration is now available! The
four ordinances are summarized below. Also, a link to a helpful
“cheat sheet” is offered at the end of this
article.
Kansas City,
Missouri
• The ordinance went
into effect on May 1, 2009. Registration began at that time and all
affected properties must be registered by May 31. Online registration is
available by going to http://www.kcmo.org/neigh.nsf/web/vacant_reg?opendocument.
The link to the Neighborhood and Community Services Department is http://www.kcmo.org/neigh.nsf/web/home?opendocument.
• Two sections of the ordinance are
focused on activities by lenders. First, the property must be registered
within 14 days of the initiation of foreclosure, which is defined as the
sending of the Notice of Default. The registration must state whether or
not the property was occupied. If the property is not vacant, a monthly
inspection must be conducted and if property becomes vacant, the
registration must be updated. Second, at the time of registration, the
party initiating the foreclosure process must send written notice
addressed to the occupant stating that the foreclosure process has been
initiated. The intent of this section appears to be geared toward making
tenants aware of a foreclosure action and not toward the condition of
the property.
• Within 90 days of becoming vacant,
the “owner” must register the property. “Owner”
is defined in the ordinance to include the lender. Until the ordinance
is amended or the city states otherwise, this section of the ordinance
would apply to properties that are not necessarily in foreclosure or
default but have become vacant.
• Registration is to be updated
annually, by June 1.
• The ordinance outlines the
information required to be in the registration.
• Attention is directed to the
“local agent” having to be a resident of the city or
basically have an office in the city.
• The ordinance also requires a
posting on the property. Within 7 days of registering the property, a
notice is to be posted on a window, providing certain information. The
section outlines the requirements of this posting.
• Any change in information must be
done within 30 days of the change, including the sale of the property or
occupancy status. This section would apply to the property after it is
sold as an REO or conveyed to a GSE or other entity.
Raymore,
Missouri
• This ordinance is
currently in effect. The link to the city of Raymore Code Enforcement
Department is http://www.raymore.com/index.aspx?nid=78.
• The ordinance requires that the
lender do a property inspection within 15 days after sending the Notice
of Default.
• If the property is vacant, the
lender must register the property within 10 days of the inspection.
• When a property is foreclosed, the
lender must register the property within 10 days of the transfer.
• Any changes in the information
within the registration must be reported within 10 days of the change.
(This will most likely be a change in representative or a change in
ownership, such as an REO sale or a conveyance to a GSE.)
• It does not appear that this
ordinance applies to properties that are vacant but not in foreclosure.
However, if a Notice of Default is sent, the lender must conduct an
inspection of the property.
Lee’s
Summit, Missouri
• This ordinance is
currently in effect. The ordinance applies to properties that are vacant
and under a current Notice of Default or Notice of Sale and properties
that have been foreclosed. The link to the city of Lee’s Summit
Neighborhood Services Division of the Codes Administration Department is
http://www.lees-summit.mo.us/content/codesEnforce5.cfm.
• The ordinance requires that a
property inspection be done within 15 days of the lender sending the
Notice of Default.
• If the property is vacant, the
lender must register the property within 10 days of the inspection.
• The ordinance specifically
calls for properties to be inspected on a weekly basis.
• After a property has been
foreclosed, the lender must register the property. A specific time frame
is not stated in the ordinance.
• Any changes in the information
within the registration must be reported within 10 days of the change.
(This will most likely be a change in representative or a change in
ownership, such as an REO sale or a conveyance to a GSE.)
Gladstone,
Missouri
• This ordinance is
currently in effect. The link to the Community Development Department
for the city of Gladstone is http://www.gladstone.mo.us/CommunityDev/index.php.
• The ordinance is slightly
different in that it requires an inspection to be done within 14 days of
the lender sending the Notice of Default.
• If the property is vacant, the
lender must register the property within 10 days of the inspection.
• When a property is foreclosed, the
lender must register the property within 10 days of the transfer.
• Abandoned properties remain
subject to the annual registrations if the conditions still apply.
• Any changes in the information
within the registration must be reported within 10 days of the change.
(This will most likely be a change in representative or a change in
ownership, such as an REO sale or a conveyance to a GSE.)
• If the property is not in
foreclosure but vacant, registration appears to be the responsibility of
the owner, not the lender (but the ordinance is not clear).
Final Note
and “Cheat Sheet”
Further, it should be noted that Jefferson City and St. Louis County are
considering enacting similar abandoned and foreclosed property
registration ordinances. In addition, St. Peters has an ordinance
related to vacant property registration; however, the city (not the
lender) must register the property and the notice is sent to all
interested parties informing them of problems with the
property.
Editor's
Note: For convenient reference, the author has prepared a "cheat
sheet".
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Copyright 2009 USFN. All rights reserved.
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