Home > 2011 > Mortgages > City Passes Tough New Foreclosure Rules for Banks

City Passes Tough New Foreclosure Rules for Banks

Advertiser Disclosure Comments 1 Comment

The city council in Springfield, Massachusetts, unanimously passed two of the toughest anti-foreclosure laws in the nation this week, the Associated Press reports. The laws are designed to protect homeowners and lower the cost of the housing crisis on local government, supporters say.

“The Springfield City Council has given residents real, tangible tools to fight back against the damage banks have done to our city and our country as a whole,” says Sellou Diaite, a community activist in Springfield, said in a press release.

[Related articles: Options if you’re underwater on your mortgage]

One law would require banks to post a $10,000 bond for every house they foreclose upon in Springfield. If a bank maintains the property until it is re-sold, it would get the money back. But if the city has to cut the grass, board up windows and doors, or do other work to secure the property, it would tap into the bond to cover those expenses.

The other law would require banks to enter mediation with homeowners to try and reach an agreement on payments before filing a suit in court to foreclose. Banks that foreclose first would be charged $300 a day.

The laws were supported by Springfield No One Leaves, a local organization of tenants and former homeowners who are living in foreclosed homes.

The laws have yet to be signed by Springfield Mayor Domenic J. Sarno. While potentially controversial, the laws were “properly vetted with our legal team, are legally sound and will stand up in court if the banks challenge them,” Springfield City Councilman Amaad Rivera told WWLP, Springfield’s NBC affiliate.

[Featured Product: Looking for bad credit credit cards?]

Image: Toms Bauģis, via Flickr.com

Comments on articles and responses to those comments are not provided or commissioned by a bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by a bank advertiser. It is not a bank advertiser's responsibility to ensure all posts and/or questions are answered.

Please note that our comments are moderated, so it may take a little time before you see them on the page. Thanks for your patience.

  • charlie rice

    A Victim Of Illegal Foreclosure Message To All Americans

    Hello my name is Charlie Rice, and I you to let all Americans to know why
    All the Banks ie Countrywide, Bank of America, & Wells Fargo are settling out of
    court on their counts of fraud, predatory lending just to name a few.
    Just GOOGLE it and you can find the REPORT LINKS.

    Where does it leave the THOUSANDS OF other HOME OWNERS like me, who are not involved in
    lawsuits that
    had our loans by these predatory lenders, that had our houses ILLEGALLY taken from

    The BANKS have already admitted that they charged us all these unnecessary fees that put
    everyone in DEFAULT on their HOMES.

    a) Should we be entitled to get our property back?
    b) These banks should compensate ALL HOMEOWNERS who wasn’t involved in the Class Action
    Lawsuit through 2000-07
    They should send US ALL back a reverse compensation check. They have our address and our
    social security numbers.
    c) WE Homeowners should have IMMUNITY from this.

    Non of these Banks don’t even legally own the NOTE because the banks don’t have a valid
    proof of claim, because
    all the notes got DESTROYED when then loan was bundled and converted to a stock then sold
    to the REMIC.

    How do we get our houses reversed back to us?

    Please Stand Up and help Us…

    Review my video and forward this news to all Americans



    Thank you for listening and forward it to everyone…

    C R

    Also Read Up This information about SECURITIZATION BELOW, because FRAUD WAS COMMITTED EVERYWHERE with these LOANS.

Certain credit cards and other financial products mentioned in this and other articles on Credit.com News & Advice may also be offered through Credit.com product pages, and Credit.com will be compensated if our users apply for and ultimately sign up for any of these cards or products. However, this relationship does not result in any preferential editorial treatment.