DepotPoint Inc., a provider of Web-based default management, short sale and real estate-owned (REO) workflow solutions, and Code Violation Services Inc. (CVS), a provider of code violation disclosure reports and vacant property registration services, have entered a strategic partnership through which users of TrackPoint, DepotPoint’s technology platform for managing default transactions, will be able to perform code violation checks on their properties. Code Violation Services will analyze and identify unrecorded, municipal code violations on defaulted property managed through TrackPoint, saving TrackPoint users costly fines from unresolved violations and reducing the timelines for the sale of REOs and other distressed property.
Each year, hundreds of thousands of fines are levied against vacant foreclosed properties, an issue that plagues neighborhoods, local governments, mortgage servicers and asset owners. Examples of code violations include property registration non-compliance, trash in the yard, broken windows, algae in pools, overgrown lawns and property improvements made without permits. Fines for these code violations can compound daily in excess of $250. However, most servicers, investors and asset managers lack the expertise, technology and resources to fully identify and address code violation issues, while many local municipalities do not have the resources to track down violators, resulting in ever-increasing fines that must be satisfied before a sale can be consummated.
“Unresolved code violations are a huge obstacle to distressed property sales,” said Joe Filoseta, president and chief executive officer of DepotPoint. "Our partnership with Code Violation Services will help banks, asset managers and other parties find and resolve current violations, as well as work proactively to prevent new ones. The result is a reduction in loss severity and distressed sales that move forward unimpeded.”
“The skyrocketing foreclosure rate over the past several years has resulted in an extraordinary number of code violations nationwide, which has made it extremely difficult to return nonperforming properties into homes for deserving families,” said Rudy Krupka, president and chief executive officer of CVS. “I know we share DepotPoint's commitment to reversing this trend, and look forward to working together.”
For more information, visit www.DepotPoint.com or www.cvsinc.net.