By Cy Ryan (contact)

Mon, Aug 4, 2008 (12:36 p.m.)

CARSON CITY – A legislative subcommittee wants banks and others that take over homes in foreclosure to keep the residences from becoming a blight on neighborhoods.

The subcommittee, headed by Assemblyman Marcus Conklin, D-Las Vegas, will ask local governments to make sure maintenance on the homes is kept up.

Sen. Mike Schneider, D-Las Vegas, complained that windows are broken, yards are not attended to and the homes deteriorate. This drives down the price and affects every homeowner in the area, he said.

“We need to put pressure on our banks,” Schneider said. “They have to step up and maintain our neighborhoods.”

But Assemblyman Tom Grady, R-Lovelock, reminded Schneider that banks aren’t the only ones taking over homes in foreclosure.

Sen. Warren Hardy, R-Las Vegas, said the local governments have authority to require banks and others follow local ordinances. Hardy suggested and the subcommittee agreed to write letters to cities and counties to enforce their ordinances.

The subcommittee, adopting proposals to present to the 2009 Legislature, is suggesting tighter licensing and oversight of agents, brokers, escrow agencies and lenders. Hardy said there have been “significant problems with fraud and (consumers) being lied to.” He said the buyers have been “misled. It’s time we get serious. It’s time to crack down.”

Hardy said he did not want “to create another level of bureaucracy.”

Schneider also complained that those who foreclose on homes within homeowners associations don’t pay HOA dues. And the dues are not paid until a new owner come in. That will be on the agenda of the 2009 Legislature.

He said taxpayers should not be spending money for the upkeep of these abandoned home. “Private industry made the money” and they should be footing the cost of maintaining the home while in foreclosure, said Schneider.