The City of Chula Vista (San Diego area) has adopted a program that purports to impose a very significant responsibility and liability upon the lender and trustees.

The ordinance would force lenders to maintain homes they seize and to register the abandoned properties with the city. The program will require lenders to hire local property management firms to prevent vacant homes from becoming neglected. The ordinance takes effect in October 2007. The program will be paid for by a $70 fee charged to title holders when they register an abandoned property with the city. The rules kick in with the first notice of default, at which point a lender must check to see whether anyone is living in the home -- if not it must hire a property management firm to prevent any sign of disrepair from popping up. Lenders can be held accountable for a home even before the foreclosure is complete because the property is security.

To view the ordinance, click here.