Posts (RSS)Cities All Over the Country Coordinate In Eradicating Foreclosure Crisis
The law department of Baltimore is coordinating with eighteen other cities in the country in efforts to stop the foreclosure crisis. Through litigation, the department hopes to help homeowners with mortgage related concerns.
The litigation is particularly aimed at lending companies that implement discriminatory lending practices. Back in 2007, Baltimore has filed a lawsuit against Wells Fargo because of its alleged discriminatory practice. However, the company contradicted the allegations. They said that race is not a consideration in their mortgage pricing. Rather, their loan pricing depends on credit risk. They do all their best to be fair in dealing with all clients as their growth depends on it.
Geroge A. Nilson, City Solicitor, said that damages to be generated, which are expected to reach an amount of tens of millions of dollars, would be used to fund foreclosure prevention measures. He further said that one of the aims of the resolution is to be able to implement in the city level what has been done in the state level.
The idea of a joint effort was introduced by St. Paul officials. They are planning on conducting litigations against some of the biggest lending companies holding most of the mortgage properties in the city. According to City Attorney John Choi, working with Nilson has been a great help.
Though foreclosure auctions is a nationwide crisis, its impact is most felt by local cities and municipalities. Maryland foreclosures increased by 10 percent from December 2007 to December 2008. Also, there was a 16 percent increase from November to December 2008.
Undoubtedly, local communities have to take bold measures to address the housing problem. Through the work group, vital information will be shared among localities, strategies will be integrated, and they will be able coordinate towards coming up with an effective foreclosure prevention measure.