Statewide Proposal Targeting Foreclosing Lenders For $1000/Day Fine For Allowing Blight Makes Progress In California Legislature

In California, The Associated Press reports:

• Banks and mortgage companies face fines of $1,000 a day if they allow foreclosed homes to become run down and a source of neighborhood blight under a bill that passed the state Senate on Monday. California has one of the highest foreclosure rates in the nation. Many communities, particularly in the Central Valley, are riddled with homes that have been abandoned by buyers who could not afford their mortgage payments when they reset to higher rates. In many cases, the vacant properties are overgrown with weeds and shrubs and have become magnets for squatters and vandals. Swimming pools often become stagnant, turning into breeding grounds for mosquitoes. Under the bill by Senate President Pro Tem Don Perata, local governments could impose the fines on lenders after giving them 14 days' notice to fix the problems.

For more, see Fines Given For Run-Down Foreclosed Homes (Banks, Mortgage Companies Could Be Penalized $1,000).