The city of Springfield Massachusetts is expected to soon implement a foreclosure ordinance now that a federal court has rejected a challenge by the Massachusetts Bankers Association. WAMC’s Paul Tuthill reports.
The ordinance mandates a mediation process to give a delinquent borrower a chance to save their home from foreclosure. Financial institutions must post a $10,000 bond with each foreclosure so that taxpayers won’t get stuck with the cost of maintaining vacant bank owned properties. Former City Councilor Amaad Rivera, the lead sponsor, believe’s it’ll help make a dent in the foreclosure crisis that has hit Springfield hard.
Housing rights activist believe the Springfield foreclosure ordinance could be a national model.