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Many small business owners struggle with obtaining business finance, and there is absolutely nothing unusual about this. Getting a business loan for small businesses, such as retailers, restaurants, garages and so on, is not as simple as one would think from the bank.This is not to say however, that getting a business loan is not possible. It all depends on where one goes looking for the loan. Typically, there are two primary options that business owners have, approaching their local banks and going to a private funder or lender.Banks and small business loansBanks look at applications for small business loans from their perspective and their perspective is determined by their criteria. When we speak of criteria, there are numerous criteria and these are all non-flexible as well as stringent.Typically, banks require high credit scores, which should be around about 700 or over. If a business applying for a loan with the bank lacks excellent credit, their application will be rejected simply based on that one criteria. In conclusion to banks and credit scores, business funding with bad credit with a bank is not a possibility.This is not to say that there are not a number of other criteria, which banks follow carefully and take equally seriously as well. The criteria of banks have been established over the decades based on shared experience, and these criteria are across the board.As is generally acknowledged, banks are not very keen on funding small business loans. The reasons for this are many and one of the primary reasons is that, small businesses are considered to be high risk investments from the banks perspective and experience.Private funders and small business loansWith a private lender the situation is completely different from what a business owner will experience with a bank. Private lenders have a completely different list of criteria to provide cash advance for business owners.As private lenders primarily offer MCA (Merchant Cash Advances), the criteria for these is simple. An MCA loan is an unsecured loan, and does not require high credit scores either. As a result it’s easy to qualify for this kind of funding.However, many a small business owners don’t look upon MCAs from a friendly perspective, and they do have their reasons. The interest rates are higher than traditional bank loans, and most business owners want low interest rates.The point with MCAs is however not to compete with bank financing, as they are both in quite different arenas. Apart from the fact that they are both financing for businesses, the entire process, requirements, features and all other details related to the funding are completely different.With an MCA loan the question how to qualify for small business loans does not really apply. Only in very few cases are small businesses turned away by private lenders. Generally, most businesses receive the funding they require for their business.MCA loans V/S bank loansMerchant cash advances or MCA in short are generally accompanied with high interest rates. Far higher than what the bank provides, and the reason for this is these are unsecured short term loans.There are many businesses who would never qualify for a traditional bank loan, regardless of how badly they need it or want it. If their credit scores are low, or if they are unable to provide the collateral the banks require their applications will be rejected. This is not to say that there are not a lot of other grounds on which small business loan applications are not declined by banks. Also, banks are under not obligation to provide funding to those they choose not to. This leaves many small business with no other option.For an MCA loan a business requires nothing much in the way of credit scores and collateral. The basic criteria for an MCA loan is mentioned here, as follows. The business should be at least 12 months old and a running business. The owner of the business should not be in active bankruptcy at the time of the loan application. Finally, the gross income of the business needs to be at least $10 thousand a month.The easy criteria makes it simple to obtain an MCA, and the drawbacks are definitely the interest rates and the duration for some business owners. However, those who capitalize on such business funding are those business who either have no choice, or those who require quick business loans. Some of the advantages are the processing time frames, which can be as little as a couple of days.

A few weeks back I was giving a coaching session and was baffled to hear that the individual I was talking to had joined a web programming online course so he would have the technical skills to begin an online business.I ended up the call very frustrated.Technical skills are not vital for starting an online business. The main mistake many people do when beginning online is to believe that they need first to know how to code.Somebody is thinking of beginning an online business and… join a programming or web engineer online course.Do you see any logic here?!I now understand why web-programming courses have been flourishing the last few years on the Internet!With individuals intrigued by the opportunity that lies in having an online business, they mistakenly believe that by gaining the technical knowledge they will be able to start an online business.You can be the best online software engineer in the world and still struggle in being a successful digital entrepreneur.I get it – without a site, you can’t go far on the web.The uplifting news is that whether you want to blog or sell products online, you can have a website without having to type a single line of code.I am thinking obviously at WordPress, my favourite website builder platform.But Wix is also another great alternative for any individual who needs an online presence.Don’t let a lack of technical skills alarm you The Internet is always changing, which implies that it offers opportunities for any individual who has something valuable to offer.If you’ve ever considered starting a business, I strongly recommend going online.The Internet offers you the possibility to create a fully automated online business that will give you a passive income and flexibility in your life. You will be able to work anywhere in the world as long as you have a computer and an Internet connection.I like to call it ‘living a digital lifestyle’.Give value to your customers first The Internet tracker, Internet Live Stats, estimates the number of websites live to near one billion.With thousands of websites created everyday, it is fundamental to know how to advertise your business effectively.95% of your work in growing an online business should to be centered on how to give value – and not on learning technical skills.When an online business goes down, it is not a result of technical issues but rather the fact that the owner didn’t bring genuine value to its audience.Many people start online on their own and give up from frustration. Don’t be this one.You might have tried before and have realized that promoting a business online is no easy task.Perhaps you have focused too much on the technical side and lost track on growing the business instead. Or you didn’t know how to bring value to your customers.For sure it requires significant investment to figure out how to give genuine value to the people you want to target, but once you found the right formula, you will see your online business flourish without having you to work harder for it!

When we mention the phrase “Online Business” – we are actually referring to the term utilized for any sort of business deal that comprises the sharing of information or data across the World Wide Web. This is also referred to as e-business.In this current age, research has proven that more and more businesses are being introduced online on daily basis. This is because it offers loads of benefits and leverage for new businesses and existing ones.The benefits of utilizing online marketing over that of offline (brick-and-mortar) marketing is primarily that of extensive reach, robust customer communication, target audience engagement, among others. Below are basic advantages of online business and marketing and why it is important for you to consider having your business launched on the internet.Online Business & Marketing Offers Widespread Audience PotentialIf you are just starting out a new business or have been in business for long; once you decide to expand and launch out online, you will have more opportunities to reach out to more customers. Launching your business online will offer you access to millions of prospective consumers online, locally and globally. Online marketing helps you reach these customers much easier and even at lesser fee than you would through offline business marketing. As an online marketer, you will be able to target more people by simply placing ads in diverse search engines, including those of Yahoo, Bing, Google, etc. With SEO applied, and using specific vital related business keywords, the business can gain first-page search engine ranking which is great for attracting loads of organic traffic and, as a result, more exposure to potential customers all around the world.It Provides Available InformationWith online business and marketing product details are more widely and readily available to large audience of people who might be interested in such products/services. It allows you to post service or product images, descriptions and prices on the internet via your website. Having an online business lets you reveal key advantages of your services or products over other competitors.It Offers Better TrackingWith dedicated software – online businesses can easily and better track business activities online. With this, businesses can apportion more advertising dollars to the right search engines to produce greater volume of website traffic.Online Business Provides Better Customer Engagement and ContactOnline business and marketing offers better customer engagement and contact. This is because the internet offers businesses the platform and capacity to deliver clear communication to their target audience and customers. With the potentials to generate email leads from website visitors, effective communication becomes easier and more direct, with much better benefit to enjoy higher returns on investment. This is also quite cheaper to attain than it is with offline business and marketing.

Pathfinders for Independent Living, Inc., a nonprofit organization, was founded after the passing of the Americans with Disabilities Act (ADA.) Pathfinders provides information and assistance to elderly and disabled individuals and their caregivers on how to live as independently as possible. Its core value is to Promote Self-Reliance. The culture within Pathfinders is one of friendly support. Pathfinders’ IT leadership proposed a project to design and build a network infrastructure that would provide security for sensitive data, data storage, Internet access, email access, updated applications and hardware, and user training. Changing the environment would affect the organizational structure and culture of Pathfinders. This paper discusses the organizational changes that occurred due a change in technology.Technology TransferTechnology transfer describes activities that have the aim of establishing measurable process improvement through the adoption of new practices. Assistive technology reduces the gap experienced by disabled and elderly individuals in accomplishing daily activities. Some of these technologies are text telephones, Braille computer monitors, infrared pointing devices, artificial limbs, and assistive software. Introducing and encouraging the use of these technologies and many others to Pathfinders’ consumers, is a responsibility of the independent living specialists.The independent living specialists assist the consumers in identifying the assistive technologies needed, applying for funding to purchase the technologies, and educating the public on the various technologies available. However to provide its services to its consumers, Pathfinders had to adapt to current information technologies.A Strategy for Technology TransferRecognizing the relationship between technology transfer and process improvement is fundamental to Pathfinders’ approach to change. Technology cannot be changed without some impact on the process or personnel that use the technology, be it an increase in productivity, a reduction in cost, or a fundamental change in method. A number of key issues had to be addressed for the technology to be successfully transferred. These are divided into several categories; technology issues, process changes, and changes in culture.Technology IssuesPathfinders would join the Information Age by installing, new computers, file servers, network printers, a local area network (LAN), and Internet access. The installation process required preparing the PCs before delivering them to Pathfinders, then a visit to the office site to build the network and deploy the equipment. The PCs were standardized on Microsoft applications. Following the installation of the network, etc., training on the use of the software was provided. With the installation of the infrastructure complete, each independent living specialist and the executive director had a personal computer, email, and Internet access.Designing and building a training center provided the opportunity for anyone to come in and learn more about computers and office application software. Pathfinders provided some basic training courses. Additionally, computer books were available for use with the computers to learn how to use the programs. Access to the Internet was provided. Funding was allocated through federal funds to support the changes in technology.Process ChangesBefore the technology changes, there were only two stand-alone PCs available for use by the staff, these PCs were very old, running DOS applications. Employees were forced to share the PCs or use typewriters to complete correspondence. Data was maintained on floppy disks and hardcopy. Access to the Internet for research was accomplished by going to the local library, which consumed valuable resources of time and personnel. Deploying the new infrastructure significantly changed the way the employees worked. The changes in infrastructure gave real-time access to the Internet, consumer data, and improved data security.Changes in CulturePrior to the deployment of technology, the employees were equal in their knowledge of using the available tools at Pathfinders. With the delivery of their network, a fundamental change occurred within the employee dynamics. An atmosphere of resentment developed due to an imbalance of knowledge and workload. Some of the employees went out of their way to grasp the advancement in technology thereby, improving themselves and their work processes. They pursued the educational opportunities offered to them by Pathfinders and enhanced their knowledge of computer applications. Productivity for these individuals increased, causing an increase in satisfaction by Pathfinders’ consumers.Conversely, there was a minority of employees, who took a stance in not excepting these changes. These individuals spent much of their time complaining that they could not do the work using the tools provided, or repeatedly requested help from the employees that understood the technology. Defense mechanisms were employed to justify their reactions to the new technology. These employees viewed the technology change as a threat and wanted nothing to do with improving their computing skills or their work environment. However, as training and practice in using the improvements to the technology progressed, acceptance began to increase and resistance began to decrease. Change is difficult in all organizations but to stay in business Pathfinders was forced to change with the times.Pathfinders operations depend heavily on federal grant money. Each year Pathfinders must forecast how that money will be spent and report that the goals of the previous year have been met. The Federal reporting system began as a hardcopy report that evolved to an online reporting system. Without the changes in technology, Pathfinders would find it difficult to apply for Federal grant money or report its disbursement.ConclusionCareful consideration was employed to determine if a change in IT infrastructure was warranted within the Pathfinders organization. Potential obstacles were identified and anticipated. One of those obstacles was the affect that a change in technology would have on the organizational culture of Pathfinders verses the improvement in customer service. Pathfinders identified that resistance to change and fear played a role in the effectiveness of the change. Additionally, Pathfinders identified that as the staff moved along the learning curve, acceptance of the technology increased and fear of the technology decreased.

The process by which one person or a group of persons receive an increment of information which has some value for either sender or receiver either by way of knowledge addition or entertainment or acquisition of energy to act or persuasion to buy or act as required by the sender is the process of communication.The Process of CommunicationThe critical part of communication is the information, which is being transferred. Information may be in any form- ranging from hand signals to public speech, from email to detailed contract, from one word greeting to a lengthy letter, from a message on a notice board of a school to a full page advertisement on a daily, from a hint with raised eyebrows to five-minute hug, from a memo from a superior or subordinate to a HR manual and so on. For the transfer of the information or the message, certain vehicle or medium is employed, which loads itself with it and passes it on to the intended receivers. Paper, phone, one-to-one meeting, public meeting, conversation, hoarding, newspaper, words written or spoken, body gestures, smile, books etc are the vehicles or media. The way the vehicles take and transport the information in such a way that the receiver understands it as it should be is the communication process. The medium or the sender or the receiver characteristically distorts the information, which in one way or other contributes fully or partly to the failure of the communication in accomplishing the purpose intended.Two important stages of communication are a) encoding and b) decoding. The process involved in these two stages is a potential source of communication failure. Encoding is translation or conversion of the idea or intention or message into words or signals so that receiver would reconvert the same as intended by the sender. Decoding is what the receiver does to reconvert the received words or signals into the idea or intention or message as originally intended by the sender. The problems associated with encoding or decoding are due to the fact that words or signals have multiple meanings and thus there is a possibility of either use of wrong words or wrong signals or understanding them in a way different from what is originally intended.Understanding of the process of communication would facilitate transactions. Else, the there would be no action at all or delayed action if at all there is some action or wrong action or relationships turning bad and so on. For instance, a boss tells his secretary that a meeting with contractors is urgent. But he finds to his surprise that a meeting has been convened quickly the next day morning, but it clashed with another program, which the secretary is not aware. The boss, in this case, while being busy with office routine overlooked the process involved in passing messages and the attendant chances of communication going wrong in many of the stages. He failed to specify the time. But the secretary understood it as next day morning. This illustrates how the process involved in encoding and decoding goes wrong and thus it springs surprises.All the elements involved in communication which constitute the communication process are a) sender b) receiver c) message c) encoding d) decoding e) channel f) noise g) feedback.The following brief discussion explains the process of communication.Sender: The point from where the message originated, here the boss, is the sender. The action intended to happen out of this message is convening of a meeting urgently, but definitely not the next day morning.Message: Message is the essential content of communication or information intended to be passed. The request for convening of meeting is the message.Receiver: The person who has to take delivery of message is the receiver. Here the secretary is the receiver whose job is to understand exactly and act on it as intended by the sender.Encoding: The idea of convening a meeting, in this instance, has been converted into words, probably with facial expressions signaling the urgency of meeting. Such process of converting an idea is words or expressions is encoding.Channel: The encoded message needs a vehicle or a medium to be transported from sender to receiver. The vehicle may be a paper or a telephone or Internet or meeting or conversation. In the present example, oral communication made by the boss to secretary is the channel.Decoding: The process of understanding by receiver of the message given by the sender. In this example, the secretary while decoding understood the message given by the sender.Noise: Noise is the causative factor for the message being miscommunicated or misunderstood due to the problem either in the medium chosen or encoding or decoding or in some stages of the process. In this instance, the message was not properly constructed and hence the secretary did not understand it as intended by the sender. The noise in communication is analogous to the external noise generated by cable or transmission equipment of land line telecommunication while the subscribers talk on land line phones and hence they don’t listen or understand the words exchanged.Feedback: The sender would be communicating back to the sender his or her evaluation or how he or she understood about each part of the message or word before the sender goes further in acting on the message. Here in the present example the secretary did not give her feedback about what she understood and thus the intended message failed.While what was described in the preceding paragraphs is a general understanding of the concept of communication process, a brief study of various theories propounded till date would facilitate a fairly in-depth understanding of the communication process. The same has been attempted in the following paragraphs.Aristotle Theory of One Way Communication: Aristotle proposed that communication has three components- sender, receiver and message. It is a simple and basic model, which, nevertheless, laid base for the rest of the theories to come up. Aristotle, at such an early period of evolution of social science, posited that communication is a one way process. It connotes that sender is responsible for good persuasive communication to happen. Neither the concept of noise nor the necessity of feedback in communication crossed his mind.Lasswell Model of Communication: Lasswell extended the communication theory of Aristotle to include another element, channel. Three important elements or components in this theory are a) Sender b) Message c) Channel. His theory posits that it is the responsibility of the sender to see that receiver understands the message, by choosing a proper channel. It is also a one-way direction of communication as that of Aristotle.Shannon-Weaver Model: CE Shannon and W Weaver, the engineers’ duo, proposed this theory in 1949. This theory was based on a mechanistic view of communication. This is the first theory, which recognizes that the message received is not the same as the message sent. This distortion is due to the noise present in the system.They introduced feedback as a corrective measure for noise. But, they did not integrate the feedback into the model. They proposed that feedback would start another cycle of communication process. The theory essentially posits that real communication takes place only when the message received and message sent are one and the same without any difference, which may be true for an engineering model. But the communication that takes place between individuals, which mostly happens without any machines, cannot be as perfect as assumed in the theory, since the filters in the individuals operate while both listening and sending. Filters are the attitudes, perceptions, experiences and evaluations that operate much before the actual communication starts. The action that takes place as intended is the proof of success of communication.The elements in this model are a) Information source b) Encoding c) Channel d) Decoding e) Destination f) Noise g) Feedback.Schramm Model of Communication: Wilburn Schramm proposed this model in 1955, which was considered to be the best of all the theories since it is evolved and comprehensive. It was proposed in three stages with some improvement in each successive stage over the previous one. These stages are also referred to as three distinct models.In the first stage, it emphasized on encoding process and source like that of Aristotle without any recognition for noise. It too was a one-way direction of communication flow.In the second stage, the emphasis shifted to the shared domain of experience of sender and receiver. The sender has to take into consideration, according to this theory, the needs and abilities of the receiver, which he must be aware of due to shared experience, and thus the selects the right channel and at the same time encodes the message in the way that can be understood by the receiver. Here the communication process is understood to be a two-way flow.In the third stage, the feedback was thought to be an essential element of communication system. In this stage of Schramm’s theory, the communication process encompasses sender, receiver, good channel, proper encoding, proper decoding, and feedback. The flow which ends with feedback starts immediately again to make a circular process.The Inferential Model of Communication: Prof.Mathukutty Monippally proposes a new theory called ‘Inferential Model of Communication’ emphasizing on symbols displayed and the construction of meaning inadequately from such symbols. The model assumes that there is no adequate and proper way to send a message, and nevertheless we send message through some chosen symbols, which again are not properly understood.Prof. Mathukutty (2001) explains, ” The inferential model assumes that we cannot communicate, that we cannot communicate, that we cannot share our message with anyone, that we cannot it in the minds of and hearts of others. And yet we want to communicate. There is no code that can capture our message faithfully and then be cracked clean by others. So we resort to displaying symbols….This procedure is generally satisfactory. Of course, we can go wrong; and occasionally we go terribly wrong. But this is the only means available.” ( Mathukutty M Monippally, Business Communication Strategies,2001, New Delhi, Tata Mcgrawhill Publishing Company Limited, pp 6-9)An Overview of Some More Models of CommunicationAnother model of Katz -Lazarfeld is the one related to mass communication, which states that the sender has to encode the message and transmit the same through mass media to an opinion leader. The opinion leader in turn transmits the same to the target audience, the public. This is also constructed as a one-way direction of information flow.Another model, which has taken a different path, is that of Westley – Maclean. It emphasizes on interpersonal communication. In this, the carefully encoded message is sent to the receiver who in turn sends it to either the sender or other individual with some changes. The model lays stress on sender, receiver and feedback, which make this model a circular one.One more one- way model is that of Berlo, which recognizes perception as an important element of communication. According to this model, any discrepancy in the reception of message due to influence of perceptions of intermediaries would lead to miscommunication. The important building blocks of this model are the source, the receiver, the meaning intended and the process of sending and receiving the message.Watlaw- Beavin-Jackobson, proposed a model of two-way communication with emphasis on the behavior of participants and the relationships existing among them to achieve communication success.Rogers-Kincaid proposed that for the communication to be successful, the individuals should be connected through social networks and sharing of information.ConclusionUnderstanding communication process is very critical to the managers of the organization. They should understand that communication is rarely understood as it should be. The distortion of the message can happen at any of the stages in communication process-sender, receiver, encoding, decoding, channel, message and feedback.

One investment criterion important to many people, and perhaps to you, is: How easy are my investments to supervise? For example, does the investment require constant care, supervision, or expense, such as the complete or partial ownership of real estate property with its rental, repair, maintenance, taxation, and other management problems?Or does the investment require none of your time, such as your contributions to a pension fund? Some people feel confident and enjoy the time and effort that may go into managing their investments. Others have neither the skill, time, nor patience to bother with their investments. There are investments that satisfy both groups, depending on personal objectives.The best method to manage all investments is the Investment Portfolio Evaluation Grid. It is a great chart to help organize your present portfolio, even if your investments right now are some money in a savings account, or an IRA or pension plan.Start by creating 7 columns and input the following: Date, Cost, Present Market Value, % Total Portfolio Market, Annual Return, Yield, and % Return on Market.Next, input all your investments on the left in rows: Savings Accounts, U.S. Savings Bonds, Treasury Securities, Certificate of Deposit, Bonds-Tax-Free, Common Shares-Dividends, Preferred Shares, Blue-Chip Shares, Real Estate, Second Mortgages & Trust Deeds, IRA & Keogh Accounts, Pension Plans, Insurance Annuities, Growth Stocks, Undeveloped Real Estate, Precious Metals, Stock Options, Commodity Contracts, Commercial Paper, Other, and Total Portfolio.Determine the percentage of the market value of your portfolio as a whole. Divide the present market value of the individual investment by the total present market value of your portfolio. Determine the percentage of what it costs you to make an investment. This is easy to figure with interest bearing investments. A $1,000 10% bond you paid $1,000 for has a 10% yield. On stocks or real estate, estimate yield by dividing the amount of increase in value and/or dividend by the amount you paid. For example, if you paid $100 for a stock and received a $5 cash dividend, the yield would be 5%. Determine the percentage of the return on your portfolio as a whole. Divide the annual dollar return on all investments by the total present market value of your portfolio.For each investment you now have, fill in all the information you can in the columns to the right. The last three columns (Annual Return, Yield, and % Return on Market), tell how your investments have performed for you, as well as their relative value within your portfolio. If you do not have exact numbers for everything, do not worry. At this point you are just seeking an overview of what you have. A big picture will start to form that indicates how your money is allocated. You can also see what types of investment vehicles serve your objectives.If you are like many people who are just starting to invest, your grid is heavily weighted toward protection of principle. You may not even be aware of some of the listed investments. Before you get into the characteristics of different investments, you will benefit greatly from having a reference point with which to evaluate the various investment opportunities. Consider all the personal factors in your financial picture, including the other people affected by the decisions you will make.Forecast as much as possible, where your current and potential income sources will take you 5-20 years from now. What standard of living is important to you now and in the future? Will you need to provide for children? Do you wish to retire early? Where do you want to allocate investment and other disposable income? To a house in the hills? In world travel? To building a business?These and dozens of other personal questions should get some serious thought at this point. Do not be rigid. Expect your priorities and goals to change. But better a mutable plan for the future than none at all. Allow yourself to dream and get excited about the possibilities. Though it is difficult, even dangerous, to generalize about what investment objectives are most important to different groups, the following information will give you broad guidelines to consider, if you are:a) Single, with low to average working income, with a savings-oriented temperament, seek investments that produce income but that also provides some long-term capital growth.b) Single, with an average to high working income, and/or an aggressive temperament, seek investments with strong total return (the sum of the current yield and the capital-gain yield), concentrating on long-term, and high-growth vehicles.c) Married, with no dependents earning an average to high income growth-oriented but aggressive, look at safe income-producing investments, such as bonds and money-market mutual funds.d) Married, with dependents, a low to average income and a conservative temperament, seek secure investments with long-term growth in both capital and income, perhaps blue-chip stocks.e) An older person, with income from Social Security and some savings, and a goal of more income while preserving current capital, seek a conservative income fund that pays dividends and has appreciation value, or a money-market fund with a satisfactory yield.Take a look at your new chart and you will see Percentage of Portfolio typically allocated to investments goals. You can use this as a guideline when considering how to allocate your investment money. However, at a younger age, safety and capital gain has greater weight. In later years the need for income and safety of principle tends to increase.

Code Enforcement Departments for Counties and Municipalities across the United States have been grappling with the increased workload issues created by the rising number of vacant and abandoned properties due to the continuous pursuit of foreclosures by mortgagees (banks, lenders, and lien-holders). ForeclosureListings.com, confirmed that the “national foreclosure rate in January 2010 was one foreclosure filing for every 466 U.S. households; the most severe problems continue in the West and in Florida. Unemployment, economic hardship, negative equity, and credit availability are driving the foreclosures.” If a property owner was in default with their mortgage payments and could not satisfy the outstanding debt or bring the mortgage and any outstanding penalties current during the pre-foreclosure stage, they were surely going to be faced with having to leave their home. In some cases, property owners that were upside down in their mortgage or through financial hardship found themselves in a position where expenses were just too overwhelming may have chosen to just walk away from their homes, no matter how difficult it was for them and their families. In a time when most jurisdictions, especially, small local governments are also dealing with the difficulties created by financial dilemmas and hardships that are reducing the workforce and resources, the rising foreclosures have taken its toll on code enforcement departments that are tasked with trying to keep neighborhoods and communities from becoming blighted, unsafe, and depreciated in value.The problems that were created by sitting vacant residential properties, such as vandalism, unsafe open structures, stagnant swimming pools, just to name a few, created immense expense as communities where tasked with securing and abating these problems without the assistance from any property owners or residents. Often, the property owners who were responsible for maintaining their homes during this difficult time felt it unfair that they were still required to provide for regular upkeep of their properties or face code enforcement penalties while the abandoned foreclosed homes next door were neglected and left to bring down the value of their homes and detract from their neighborhoods. According to the latest report from RealtyTrac, a company that monitors the trends of foreclosures across each state, “Florida posted the nation’s second highest state foreclosure rate in November 2009 with one in every 165 housing units receiving a foreclosure filing during the month. Florida took the No. 2 spot from California, which posted the nation’s third highest foreclosure rate.” It became common for community members and leaders around the State of Florida to feel that the mortgagees were slow to take responsibility for these assets and started to put pressure on county and local governments to address these properties, without using their tax dollars to do so.Foreclosure Procedure in the State of FloridaThere are a few different types of foreclosure procedures in the United States. According to Erate.com, “One common type of foreclosure is the ‘deed in lieu of foreclosure’ arrangement. Often called ‘strict foreclosure,’ the bank claims the title and possession of the property back to satisfy the debt. The other most common type is the proceeding known simply as ‘foreclosure’ or ‘judicial foreclosure.’ Here the property is exposed to auction by a county or court official. The winning bidder receives a deed to the property. Banks and other lenders usually bid on the property in the amount of the owed debt, and if no other buyers step forth they will receive the title to the property. Other states employ yet another type of foreclosure, called ‘non-judicial’ or ‘statutory’ foreclosure. In this case, when a borrower fails to make payments, the lender may be issued a notice of default and intent to sell. If the borrower does not solve the default with payments or other means, the property will be sold at public auction.” In the State of Florida, foreclosures are handled as judicial procedures that are processed through the court system. This process can take a bit of time, 5 months or more, beginning with the lender advising a mortgagor that they are in default and subsequently recording a notice of Lis Pendens. The homeowner will be served notice of complaint, which basically provides notice of intent to foreclose and contains the total debt. The property owner gets to have an opportunity to appear in court to answer the complaint, however, if the court rules against the property owner, a judgment of foreclosure will be issued. After the judgment has been entered, a writ will be issued by the court authorizing a sheriff’s sale. Usually, if the property owners remain inside the home, they would be considered as trespassing. If the property is sold by judicial sale, Certificate of Title will be issued to the new property owner or returned to mortgagee.Challenges for code complianceCode enforcement officers typically have to address code violations on occupied properties where the residents are either unaware of the code requirements, neglectful, financially distressed, or possibly violating code requirements intentionally, however, in the case of abandoned or vacant homes, these residents have either walked away or have been required to vacate the properties leaving the property maintenance and violations for another responsible party who have control over the properties which in most cases are the holders of the mortgage notes. This becomes a difficult task as property owners were often required to vacate the premises before the property was either sold or taken back by the mortgagee through completion of the foreclosure process leaving the ownership records unchanged. Code enforcement officers were now faced with dealing with code violations on vacant properties where tracking down the responsible parties for these properties was extremely difficult. Even when a mortgagee’s name was located from researching foreclosure filing papers, there would only be large corporate bank or financial institution name and an address that would not lead you directly to someone who was responsible for the property and would get lost in the maze. With strapped resources and increasing demands from community members, local governments started to adopt various vacant property registration programs that required mortgagees to become more involved with these foreclosure properties either from the time the property owners was going into default or when a property became vacant and abandoned. Although some registration programs may only consists of providing information such as responsible party name and contact information, some programs have required significant steps be taken for a vacant, abandoned property including providing electronic security systems.Sample Registration Program, Broward County FloridaLocal governments have had to take steps to bolster local communities against the negative effects of vacant and abandoned properties and obtain voluntary compliance with property maintenance and building code violations. For example, in Broward County Florida, Building Code Inspectors and Code Compliance Officers respond to numerous complaints and concerns regarding single-family homes, condominiums, townhouses and duplexes that are being vandalized, in severe states of blight, lack of maintenance, security, hazardous conditions, and other health and safety issues that these properties present. Requiring mortgagees and absentee owners of vacant and abandoned properties to correct such violations presents significant challenges to the Code Enforcement process. Additionally, when these properties are abandoned and vacant for extended periods of time, there may be unexpected problems for purchasers of these properties such as property maintenance issues, outstanding building permits, and code enforcement liens and/or assessments. In response to recent events in the housing market which have led to a drastic rise in the number of foreclosed homes located within the unincorporated areas of Broward County, the Abandoned/Vacant Real Property Registration and Certification ordinance was created to protect unincorporated residential neighborhoods from becoming blighted through the lack of adequate maintenance and security of abandoned and vacant properties. The program is intended to address those properties that are vacant and abandoned that have come under the control of a mortgagee or beneficiary as a result of the default of the borrower and/or the foreclosure process. The program also applies to properties that were obtained under a deed in lieu of foreclosure. The program requires mortgage lenders to inspect defaulted properties to confirm that they are occupied. If a property is found to be vacant, the program requires that the lender exercise the abandonment clause within their mortgage contract, register the property with the County and immediately begin to secure and maintain the property to program standards.The ordinance also requires that a local property management company be contracted to perform bi-weekly inspections to verify compliance with the requirements of the ordinance, if the owner of the property is a corporation, partnership, and/or out of area mortgagee/owner. The property must also be posted with the name and 24-hour contact number for the property manager who can respond to problems or concerns. The inspections and certification portion of this program offers added protection for buyers of foreclosed residential properties in the unincorporated areas of Broward County by requiring all title holders of these properties which are acquired through a Certificate of Title (Foreclosures and Judgments), in accordance with Chapter 45, Florida Statutes or under a deed in lieu of foreclosure/sale to obtain a Certificate of Foreclosure Inspection prior to offering the property for sale, transfer, or other alienation. This requirement allows for the performance of a cursory visual inspection of the property and an inspection report by a code enforcement officer to provide a disclosure of any non-compliance with property maintenance codes, outstanding County liens and/or special assessments encumbering the property and to also identify any outstanding building permits.Steps taken to address problems with foreclosuresAs the federal, state, and local governments look for ways to assist distressed homeowner’s in keeping their homes or to assist purchaser’s and investors to acquire foreclosed homes to get them repaired, maintained and occupied, the banks have also focused on addressing the concerns of local governments in regards to the problems associated with vacant and abandoned properties. Mortgagees may utilize their own staff or obtain the services of companies such as asset managers or mortgage servicers to handle numerous functions and responsibilities related to foreclosed properties from pre-foreclosure thru property preservation ultimately to sale or transfer to a new owner. The companies employ a variety of staff to handle such broad areas such as property management, real estate and title services and have started to place a greater emphasis on property preservation and code compliance. These companies employed by the banks that utilize their services have recently focused their attention on the ordinance requirements for properties under their management, at the same time, promoting a partnership with local jurisdiction code enforcement staff to help alleviate the problems with vacant and abandoned properties and create a better method of communication when problems are not being addressed with property maintenance issues. According to information provided on the website for The Mortgage Bankers Association, this organization promotes the utilization of the MERS ® Mortgage Electronic Registration System database to obtain a list of property preservation contacts to assist local jurisdictions in their efforts, especially in the case of securing open and unguarded, vacant properties.ConclusionProperties that continue to be abandoned, neglected, and unsecured for extended period of times, which may include years, work against the mortgagees, as these conditions continue to force property values continue to decline, costs for repairs to increase due to vandalism and deterioration and liability for the mortgagees remain as squatters and children get access inside unsecured residences. In order for code enforcement to be truly proactive, it must take steps to prevent problems not address them after the fact. Even though most jurisdictions charge a fee for registering these properties, the fees are usually intended to offset the operating costs for the program which includes all administrative work involved, as well as the increased field investigations work that these vacant and abandoned properties require. The proactive nature of these programs to seek out the responsible property preservation and servicers work to reduce the costs for the mortgagees as well as the local jurisdiction. Fines and liens that are placed on these properties due to daily running penalties and costs for abatement work such as performing board-ups, stagnant pool abatement, lot mowing, and junk, trash removal may reach in the hundreds and even thousands. Because many of these properties remain in the name of the previous owner until the property is transferred and the new owner is properly recorded in the county records, most jurisdictions are only required to cite the owner shown on their tax assessor’s records or deeds in order to address violations. The property registration programs have accomplished numerous goals which include increased responsibility and accountability by the mortgagees in regards to these assets, adherence to local property maintenance and safety building codes, and increased attention towards making these properties viable again for ownership and heightened steps toward re-occupancy. The more properties remain occupied and less are bank owned or abandoned, the less for the need for these types of vacant property ordinances and registration programs.

Code Enforcement Departments for Counties and Municipalities across the United States have been grappling with the increased workload issues created by the rising number of vacant and abandoned properties due to the continuous pursuit of foreclosures by mortgagees (banks, lenders, and lien-holders). ForeclosureListings.com, confirmed that the “national foreclosure rate in January 2010 was one foreclosure filing for every 466 U.S. households; the most severe problems continue in the West and in Florida. Unemployment, economic hardship, negative equity, and credit availability are driving the foreclosures.” If a property owner was in default with their mortgage payments and could not satisfy the outstanding debt or bring the mortgage and any outstanding penalties current during the pre-foreclosure stage, they were surely going to be faced with having to leave their home. In some cases, property owners that were upside down in their mortgage or through financial hardship found themselves in a position where expenses were just too overwhelming may have chosen to just walk away from their homes, no matter how difficult it was for them and their families. In a time when most jurisdictions, especially, small local governments are also dealing with the difficulties created by financial dilemmas and hardships that are reducing the workforce and resources, the rising foreclosures have taken its toll on code enforcement departments that are tasked with trying to keep neighborhoods and communities from becoming blighted, unsafe, and depreciated in value.The problems that were created by sitting vacant residential properties, such as vandalism, unsafe open structures, stagnant swimming pools, just to name a few, created immense expense as communities where tasked with securing and abating these problems without the assistance from any property owners or residents. Often, the property owners who were responsible for maintaining their homes during this difficult time felt it unfair that they were still required to provide for regular upkeep of their properties or face code enforcement penalties while the abandoned foreclosed homes next door were neglected and left to bring down the value of their homes and detract from their neighborhoods. According to the latest report from RealtyTrac, a company that monitors the trends of foreclosures across each state, “Florida posted the nation’s second highest state foreclosure rate in November 2009 with one in every 165 housing units receiving a foreclosure filing during the month. Florida took the No. 2 spot from California, which posted the nation’s third highest foreclosure rate.” It became common for community members and leaders around the State of Florida to feel that the mortgagees were slow to take responsibility for these assets and started to put pressure on county and local governments to address these properties, without using their tax dollars to do so.Foreclosure Procedure in the State of FloridaThere are a few different types of foreclosure procedures in the United States. According to Erate.com, “One common type of foreclosure is the ‘deed in lieu of foreclosure’ arrangement. Often called ‘strict foreclosure,’ the bank claims the title and possession of the property back to satisfy the debt. The other most common type is the proceeding known simply as ‘foreclosure’ or ‘judicial foreclosure.’ Here the property is exposed to auction by a county or court official. The winning bidder receives a deed to the property. Banks and other lenders usually bid on the property in the amount of the owed debt, and if no other buyers step forth they will receive the title to the property. Other states employ yet another type of foreclosure, called ‘non-judicial’ or ‘statutory’ foreclosure. In this case, when a borrower fails to make payments, the lender may be issued a notice of default and intent to sell. If the borrower does not solve the default with payments or other means, the property will be sold at public auction.” In the State of Florida, foreclosures are handled as judicial procedures that are processed through the court system. This process can take a bit of time, 5 months or more, beginning with the lender advising a mortgagor that they are in default and subsequently recording a notice of Lis Pendens. The homeowner will be served notice of complaint, which basically provides notice of intent to foreclose and contains the total debt. The property owner gets to have an opportunity to appear in court to answer the complaint, however, if the court rules against the property owner, a judgment of foreclosure will be issued. After the judgment has been entered, a writ will be issued by the court authorizing a sheriff’s sale. Usually, if the property owners remain inside the home, they would be considered as trespassing. If the property is sold by judicial sale, Certificate of Title will be issued to the new property owner or returned to mortgagee.Challenges for code complianceCode enforcement officers typically have to address code violations on occupied properties where the residents are either unaware of the code requirements, neglectful, financially distressed, or possibly violating code requirements intentionally, however, in the case of abandoned or vacant homes, these residents have either walked away or have been required to vacate the properties leaving the property maintenance and violations for another responsible party who have control over the properties which in most cases are the holders of the mortgage notes. This becomes a difficult task as property owners were often required to vacate the premises before the property was either sold or taken back by the mortgagee through completion of the foreclosure process leaving the ownership records unchanged. Code enforcement officers were now faced with dealing with code violations on vacant properties where tracking down the responsible parties for these properties was extremely difficult. Even when a mortgagee’s name was located from researching foreclosure filing papers, there would only be large corporate bank or financial institution name and an address that would not lead you directly to someone who was responsible for the property and would get lost in the maze. With strapped resources and increasing demands from community members, local governments started to adopt various vacant property registration programs that required mortgagees to become more involved with these foreclosure properties either from the time the property owners was going into default or when a property became vacant and abandoned. Although some registration programs may only consists of providing information such as responsible party name and contact information, some programs have required significant steps be taken for a vacant, abandoned property including providing electronic security systems.Sample Registration Program, Broward County FloridaLocal governments have had to take steps to bolster local communities against the negative effects of vacant and abandoned properties and obtain voluntary compliance with property maintenance and building code violations. For example, in Broward County Florida, Building Code Inspectors and Code Compliance Officers respond to numerous complaints and concerns regarding single-family homes, condominiums, townhouses and duplexes that are being vandalized, in severe states of blight, lack of maintenance, security, hazardous conditions, and other health and safety issues that these properties present. Requiring mortgagees and absentee owners of vacant and abandoned properties to correct such violations presents significant challenges to the Code Enforcement process. Additionally, when these properties are abandoned and vacant for extended periods of time, there may be unexpected problems for purchasers of these properties such as property maintenance issues, outstanding building permits, and code enforcement liens and/or assessments. In response to recent events in the housing market which have led to a drastic rise in the number of foreclosed homes located within the unincorporated areas of Broward County, the Abandoned/Vacant Real Property Registration and Certification ordinance was created to protect unincorporated residential neighborhoods from becoming blighted through the lack of adequate maintenance and security of abandoned and vacant properties. The program is intended to address those properties that are vacant and abandoned that have come under the control of a mortgagee or beneficiary as a result of the default of the borrower and/or the foreclosure process. The program also applies to properties that were obtained under a deed in lieu of foreclosure. The program requires mortgage lenders to inspect defaulted properties to confirm that they are occupied. If a property is found to be vacant, the program requires that the lender exercise the abandonment clause within their mortgage contract, register the property with the County and immediately begin to secure and maintain the property to program standards.The ordinance also requires that a local property management company be contracted to perform bi-weekly inspections to verify compliance with the requirements of the ordinance, if the owner of the property is a corporation, partnership, and/or out of area mortgagee/owner. The property must also be posted with the name and 24-hour contact number for the property manager who can respond to problems or concerns. The inspections and certification portion of this program offers added protection for buyers of foreclosed residential properties in the unincorporated areas of Broward County by requiring all title holders of these properties which are acquired through a Certificate of Title (Foreclosures and Judgments), in accordance with Chapter 45, Florida Statutes or under a deed in lieu of foreclosure/sale to obtain a Certificate of Foreclosure Inspection prior to offering the property for sale, transfer, or other alienation. This requirement allows for the performance of a cursory visual inspection of the property and an inspection report by a code enforcement officer to provide a disclosure of any non-compliance with property maintenance codes, outstanding County liens and/or special assessments encumbering the property and to also identify any outstanding building permits.Steps taken to address problems with foreclosuresAs the federal, state, and local governments look for ways to assist distressed homeowner’s in keeping their homes or to assist purchaser’s and investors to acquire foreclosed homes to get them repaired, maintained and occupied, the banks have also focused on addressing the concerns of local governments in regards to the problems associated with vacant and abandoned properties. Mortgagees may utilize their own staff or obtain the services of companies such as asset managers or mortgage servicers to handle numerous functions and responsibilities related to foreclosed properties from pre-foreclosure thru property preservation ultimately to sale or transfer to a new owner. The companies employ a variety of staff to handle such broad areas such as property management, real estate and title services and have started to place a greater emphasis on property preservation and code compliance. These companies employed by the banks that utilize their services have recently focused their attention on the ordinance requirements for properties under their management, at the same time, promoting a partnership with local jurisdiction code enforcement staff to help alleviate the problems with vacant and abandoned properties and create a better method of communication when problems are not being addressed with property maintenance issues. According to information provided on the website for The Mortgage Bankers Association, this organization promotes the utilization of the MERS ® Mortgage Electronic Registration System database to obtain a list of property preservation contacts to assist local jurisdictions in their efforts, especially in the case of securing open and unguarded, vacant properties.ConclusionProperties that continue to be abandoned, neglected, and unsecured for extended period of times, which may include years, work against the mortgagees, as these conditions continue to force property values continue to decline, costs for repairs to increase due to vandalism and deterioration and liability for the mortgagees remain as squatters and children get access inside unsecured residences. In order for code enforcement to be truly proactive, it must take steps to prevent problems not address them after the fact. Even though most jurisdictions charge a fee for registering these properties, the fees are usually intended to offset the operating costs for the program which includes all administrative work involved, as well as the increased field investigations work that these vacant and abandoned properties require. The proactive nature of these programs to seek out the responsible property preservation and servicers work to reduce the costs for the mortgagees as well as the local jurisdiction. Fines and liens that are placed on these properties due to daily running penalties and costs for abatement work such as performing board-ups, stagnant pool abatement, lot mowing, and junk, trash removal may reach in the hundreds and even thousands. Because many of these properties remain in the name of the previous owner until the property is transferred and the new owner is properly recorded in the county records, most jurisdictions are only required to cite the owner shown on their tax assessor’s records or deeds in order to address violations. The property registration programs have accomplished numerous goals which include increased responsibility and accountability by the mortgagees in regards to these assets, adherence to local property maintenance and safety building codes, and increased attention towards making these properties viable again for ownership and heightened steps toward re-occupancy. The more properties remain occupied and less are bank owned or abandoned, the less for the need for these types of vacant property ordinances and registration programs.