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Boston May Crack Down On Owners Of Foreclosed Properties

Proposed Ordinance Would Require Lenders To Maintain Vacancies

POSTED: 6:28 am EST January 30, 2008
UPDATED: 6:45 am EST January 30, 2008

You see them popping up throughout the city -- vacant homes in foreclosure, falling into disrepair.

The city of Boston has decided to turn up the heat on mortgage companies in an effort to get them to clean up their act.

NewsCenter 5's Steve Lacy reported that the city feels the companies who maintain the titles to the foreclosed homes should be required to maintain them just as any other homeowner would.

To that end, Boston City Councilor Rob Consalvo will introduce an ordinance that would require companies to register foreclosed properties with the city, identify who's responsible for maintaining the home, post contact information on the property and pay an annual fee of $100 for each vacant home.

Many of the proposed requirements are already on the books, but finding the owners of foreclosed properties can be challenging.

The push for renewed accountability on the part of lenders comes amid a recently-launched FBI investigation into mortgage fraud.

When lenders don't do their part, the cost of maintaining abandoned homes often falls to the city. The vacant homes also can sometimes drag down the value of neighboring properties.

Similar ordinances have already been passed in other cities. Boston Mayor Tom Menino met earlier this week with several mortgage companies and he called the proposal a step in the right direction.


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