Palatine village council backs foreclosure legislation

It's no wonder properties can fall into disrepair so easily when a town doesn't even know to keep a watchful eye.

Legislation making its way to Springfield would require municipalities be notified when a foreclosure is initiated and completed.

Palatine, which saw filings jump a whopping 82 percent last year, was eager to get on board. The village council on Monday passed a resolution supporting the proposed Illinois Vacant and Abandoned Properties Act.

Of the 702 Palatine properties that went into foreclosure in 2008, Village Manager Reid Ottesen said staff didn't know about many of them. Too often they become aware only after a vacant or abandoned property has become a problem.

In addition to notification, the new law would authorize municipalities to create land banks that can hold properties when there is no private market interest. They could also hold lenders responsible for maintenance and recover more of the associated costs.

According to the Metropolitan Mayors Caucus, Chicago Metropolitan Agency for Planning and the Business and Professional People for the Public Interest, the vast majority of the 115,000 Illinois properties subject to foreclosure filings last year weren't bought by a new owner. Rather, they're reverted to lenders and can sit vacant for months, leading to crime, health hazards and diminished values.

Only 231 of the 702 properties in Palatine have been sold. The organizations added that municipalities usually spend at least $5,000 per property enforcing maintenance codes, securing vacant buildings and increasing police patrols.

"Property maintenance issues are on the rise," Ottesen said. "A lot of time is spent just tracking down the owner."

Palatine has an especially difficult time locating property owners because there is no real estate transfer tax.