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Niagara Falls taunts another mortgage holder over "zombie houses"

The Niagara Falls Community Development this week posted signs in front of 17 houses owned by Ocwen Financial Corp., a preliminary step to possible legal action against the mortgage holder under New York's "zombie house" law.

The signs read, "How Did This Zombie Get Here? We're Looking at You, Ocwen Financial!" It's the same kind of sign that the city posted at six homes owned by Citizens Bank in August. Legal action soon followed, as the city is seeking a court order for the bank to either sell the houses or at least repair building code violations.

Community Development Director Seth Piccirillo said the city has sent letters to Ocwen, informing it of alleged code violations, and threatening court action before the end of the year.

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