U.S. Bank Blasted as Slumlords over Blighted Foreclosures in California

A report released by CoreLogic this week shows that California was once again the state with the most foreclosures nationwide. Blighted homes in California are largely unaddressed by banks, but L.A. city attorneys are fighting back.

Attorneys representing the city filed a lawsuit against the fifth largest bank in the country, U.S. Bank, calling them “one of the largest slumlord in the City of Los Angeles,” CNN Business reported. The complaint stated that U.S. Bank has failed to maintain over 170 foreclosed homes causing blight in communities, attracting crime and driving down home prices.

But U.S. Bank says the city attorneys are targeting the wrong entity in their lawsuit, stating they only serve as the trustees of the home and mortgage services are responsible for maintenance of the property.

But the city attorneys said that trustees are required to take responsibility when the mortgage servicers fail to maintain the properties.

RealtyTrac reported that over 620,000 foreclosed homes nationwide are owned by lenders. Many of these homes have neglected lawns; they fall into disrepair and become a beacon for squatters and criminal activity. But no one is taking responsibility for these homes and cities must use their dwindling revenues to take care of the blight problem, which is then passed down to the taxpayer.

The foreclosure crisis is weighing down the economy and adversely affecting local communities all across the country. When at all possible, a foreclosure attorney will do all in their power to help a person stay in their homes, which can in turn help home prices rebound.