Chicago Will Make Lenders Maintain Vacant Houses

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Chicago passed a city ordinance that will make lenders pay for the upkeep and maintenance of properties they do not own. The City's position is that the lenders have an "interest" in the property and that is enough. Lenders are sure to fight this new law.

This change means that the mortgagees will have to cut the grass, shovel the snow, trim hedges and remove the garbage and the occasional graffiti. They will also be responsible for handling any complaints and disputes from the public. Mayor Emanuel applauded the city's decision.

Vacant and empty house produce extra costs to cities across America. Chicago spent about $15 million last year on empty buildings.

Los Angeles is suing Deutsche Bank for millions of dollars claiming that the bank failed to maintain foreclosed properties.

The California General Assembly is considering a bill that will fine lenders $20,000 for each foreclosure that is in violation.

We can expect more cities to try and collect from lenders. Lenders still have a vested interest in the properties and should definitely pay to have the house maintained.

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