U.S. banks urged to prevent foreclosed properties from falling into disrepair
As more properties become foreclosed amid a continuing financial crisis, Los Angeles city officials Saturday urged responsible banks to prevent foreclosed properties from falling into disrepair.
Banks will be fined if they fail to take good care of the foreclosed homes they own, City Council President Eric Garcetti said.
Angelenos should report foreclosed properties that have fallen into disrepair, so the city can fine the banks that own them, Garcetti said.
Under an ordinance that took effect Thursday, banks can be fined 1,000 dollars per day for failing to maintain a foreclosed home. The maximum fine is 100,000 dollars per year.
The ordinance calls for creating a registry of foreclosed properties, whose owners will be instructed to keep them “clean and free from accumulation of debris, rubbish, garbage, trash, overgrown vegetation and other similar material.”
Banks will have 30 days to fix problems before being fined.
“If you see a home that is in your neighborhood, that is full of weeds and maybe broken windows, beginning to be neglected, and you know it’s because it’s going through a foreclosure, contact the city,” Garcetti said.
Posted: July 12th, 2010 under Market Report.
Tags: banking services, banks companies, commercial banks, Market Report, U.S. banks