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Sheriff
to cut foreclosure fees
The changes, which will take effect in October, come after
lobbying by community advocates trying to reduce the high number of people
losing their homes.
The fee for each property, now $2,000, will be reduced to
$1,200. Green made the announcement in a news release issued last week.
And after an initial $100 filing fee, the remaining $1,100 will
be due 60 days before foreclosure, rather than the current 90 days.
That $1,100 pays for legal advertising that is handled by an
agency run by two political allies of Green's. It earns a 15 percent
commission on each ad.
Monthly mortgage foreclosure listings rose to record numbers
earlier this year, and about 3,000 homes a year are sold at the sales handled
by the Sheriff's Department.
To halt a foreclosure, the homeowner must not only start
repayment of the mortgage, but also reimburse the mortgage company and the
sheriff for their costs.
Attorneys for mortgage companies have previously agreed to
reduce their fees, and a lower sheriff's fee will mean a homeowner has to find
less cash to halt the sale, said John Dodds,
executive director of the Philadelphia Unemployment Project, which has been
pushing Green to cut his fees.
The $800 Green is cutting has been collected to pay overdue
water and sewer bills owed by foreclosed homeowners, Green said in an
interview last week.
Instead, the buyer will pay those costs directly to the city at
the time of sale, Green said.
Dodds gave Green's move a partial
endorsement. "It's not what we are looking for, but it's certainly a
step in that direction," he said.
"We asked that the [advertising] fees be reduced to $700,
and asked that he not collect it till 30 days before the sale. He is moving
in that direction."
Each of the hundreds of city properties facing foreclosure is
advertised every month to comply with a state law that each sale be announced
three times in a "legal publication" and in one paper of
"general circulation."
Reach Communications, an advertising agency, prepares those ads
and earns a 15 percent commission, giving it an annual fee of more than
$500,000.
Dodds wants the advertising costs reduced by
trimming the size of the ads, and by advertising in smaller newspapers.
Green said he is studying proposals to reduce advertising costs.
Jim Davis, managing partner of Reach, said his firm would
consider reducing its commission.
Green rotates the monthly advertisements among The Inquirer, the
Philadelphia Daily News, and the Philadelphia Tribune. On the months he does
not advertise in The Inquirer - which has the highest rates and highest
circulation - Green places advertisements in as many as 20 small community
newspapers. He said he does this to reach people who do not read major
newspapers.
Contact staff writer Nathan Gorenstein at 215-854-5983 or ngorenstein@phillynews.com.
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