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» VISIT US ONLINE @ DSNEWS.COM 55 regulatory requirements hang the definition of "abandoned" on the condition of the property as well as the occupancy status. In general, the definitions of abandoned and vaccant are very different. Unfortunately, based off regulatory requirements in some jurisdictions, the lines are blurred between the two. is can put the burden on the borrower to confirm that the property is vacant and not abandoned, a position most servicers are not willing to put the borrower in.. Nevertheless, there are innumerable issues lenders and servicers must face when it comes to legally establishing a property as vacant and abandoned. As Hladik explained, servicers need to determine whether they can unilaterally make that decision for themselves, which is a possibility in some cases. In some cases, servicers can have a local code enforcer sign off on a certification of abandonment, or they can retain a local property inspector to make the determination. However, if a servicer signs an affidavit certifying that the property is vacant and abandoned, but that determination is later proven to be incorrect, that could open the servicer up to liability or even charges of perjury. e same risk faces property-preservation vendors who might otherwise be able to sign off that a property is abandoned. It's an inherently convoluted process made all the more complicated by that lack of uniform definitions that could serve as an industry standard. Adams explained that one alternative for servicers operating in judicial foreclosure states is to have their process server visit the site and sign the affidavit certifying that the property is abandoned. SPEEDING THINGS UP George Romero, the legendary horror director whose films "Living Dead" films introduced the modern version of zombies into the pop-culture lexicon, filmed many of those movies in Pennsylvania. In an odd twist of fate, Pennsylvania has also recently been both a zombie property hub and a strong proponent for smarter legislation when it comes to tackling the problem. "Philadelphia is a prime example of how this issue has perplexed many cities across the country," Hladik said. Philadelphia was spending millions of dollars on issues stemming from vacant and abandoned properties, ranging from standard maintenance issues to those related to crime, including arson. e problem was exacerbated by the lengthy foreclosure timelines necessitated by the state's judicial process. "In some cases, I could complete an entire owner-occupied foreclosure, and evict them in less time than it would take to foreclose on an abandoned property," said Hladik. Hladik noted that completing a vacant or abandoned foreclosure in Pennsylvania could also cost "two to three times as much" as an owner-occupied foreclosure, simply due to all the extra steps and paperwork involved. "Length of foreclosure actions is one of the biggest challenges," said Steve Staid, SVP, Servicing for PHH Mortgage. "Few states have an expedited process when a property has gone vacant or abandoned. While we make every effort to secure and preserve properties, the blighted areas tend to have a higher level of vandalism and crime, which perpetuates the issue." "is is a state-by-state challenge since foreclosures actions are driven by state law," Staid continued. "It is difficult for servicers to raise discussions around expediting foreclosure without appearing that the industry is simply trying to speed up all foreclosure actions, not just those subject to blight." In June 2018, Pennsylvania Governor Tom Wolf signed HB 653 into law. e bill provides for an accelerated foreclosure process for vacant and abandoned properties. e current foreclosure process in Pennsylvania can take anywhere from 300 to 540 days. e new legislation aims to reduce this timeframe by 240 days by providing "a process to have a property certified as vacant and abandoned, either by a municipal code officer or through judicial certification, before an expedited foreclosure may commence." e legislation also specifies the process a lender must follow when using expedited foreclosure on these properties. Among other things, Pennsylvania's streamlined foreclosure statute will allow municipal code-enforcement officers to certify a property as vacant or abandoned if it demonstrates multiple characteristics such as boarded-up windows, the removal of furnishings, termination of utilities, or the accumulation of trash or mail on the property. e bill also allows the servicer to opt into an expedited sheriff 's sale of the property. "is new Pennsylvania law will help lenders and servicers prevent blight or expedite the restoration of deteriorated properties, getting them back in condition to sell or rent, and eliminating the safety hazard that these vacant properties often represent," Sharga said. "Accelerating foreclosure proceedings on vacant and abandoned properties is a win for all parties involved: neighborhoods, communities, and local governments, in addition to lenders and servicers." "is new bipartisan legislation is a significant improvement to the fight against blight, as well as serving to eliminate the accompanying delayed and costly foreclosure process that came with vacant or abandoned properties," Hladik told DS News. "Cities throughout the Commonwealth carried a significant cost—as well as a budgetary depletion—in having to maintain vacant properties. e new procedures put in place by this law give servicers and lenders the opportunities to fast-track foreclosures of vacant properties and quicken the pace lenders can restore these homes to the tax-producing rolls." Pennsylvania is just one of many states to adopt streamlined foreclosure legislation in recent years, and it's proven to be an effective tool in combating urban blight stemming from abandoned properties. Other states with streamlined foreclosure legislation include New Jersey, Connecticut, Kentucky, Maine, and Washington, to name just a few. Expedited foreclosures offer several benefits for servicers, Adams explained, including providing a clear and marketable title, enabling proper maintenance of the home, and becoming an active part in neighborhood revitalization. However, expedited foreclosures aren't a perfect solution either. "Expedited foreclosures potentially put the burden on the borrower to confirm the property is not abandoned," Adams said. "is can cause the borrower to incur additional legal costs as well. We need agency and insurer support through the creation of more education and outreach for borrowers that want to exit the home," Adams continued. Adams explained that just how much expedited foreclosures can affect the timeline of the process varies significantly, depending on the locale. In New York, an expedited foreclosure can decrease the timeline between service and judgment by an average ranging between 120–360 days. In New Jersey, the timeline between complaint to judgment can be decreased, as can the timeline from judgment to sale. e 2018 averages for decreased timelines in New York ranged between 30–300 days. Sometimes, however, the gains are negated by other factors. "e timeline decreases you see for both Connecticut and Maryland are offset by other legal filings you have to complete in order to get the expedited foreclosure," Adams said. In a summer 2018 report entitled "Fast Track Foreclosure Laws: Not a Silver Bullet for Fighting Blight," the National Community Stabilization Trust (NCST), a nonprofit organization focused on restoring vacant properties, attempted to review the efficacy of such laws but was unable to reach a conclusion. e nonprofit explained that there was insufficient data to truly examine fast-track proceedings in various states "either because

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