• News
  • Celebrities
  • Finance
  • Crypto
  • Travel
  • Entertainment
  • Health
  • Others

Cleveland Wins the First Round in Fight to Stop Banks From Dumping Their Trash

Late last year, TWI wrote about a landmark lawsuit in Cleveland, in which housing lawyers were trying to stop banks from dumping their rundown and neglected bank-owned homes on the city. The lawyers, working on behalf of a local nonprofit, had momentum at first, securing a temporary restraining order for two weeks that temporarily stopped banks from unloading their Real Estate Owned (REO) properties at fire sale prices. The suit contended that business practice violated local public nuisance laws because it dragged down property values for everyone.

The suit named Wells Fargo and Deutsche Bank as the biggest foreclosers in Cleveland – explaining that they sell REOs in bulk, at pennies on the dollar, to speculators and flippers, who often abandon the properties. But those practices are commonly used by other banks as well. If the suit succeeds, other localities could tackle the REO problem by going citing banks as a public nuisance.

The banks immediately fought back and in January got the cases moved to federal court, where the nonprofit would face a far more costly battle. Housing court judges also tend to be more familiar with the problem of neglected bank-owned properties. It looked like the lawsuits might be doomed.

But there’s been a big development, according to Kermit Lind, a Cleveland State University housing professor and one of the lawyers for Cleveland Housing Renewal Project, Inc., the nonprofit filing the suit. Federal court judges recently sent both cases back to housing court, at the request of the nonprofit’s lawyers. That means if housing court concludes that Wells Fargo and Deutsche Bank are violating public nuisance laws by neglecting their REO inventories, the sales could be stopped. The banks would have to either fix up the properties before selling them, or demolish them — anything to stave off the death spiral of plummeting property values. If the banks are smart, they’ll find a way to hand them over to community groups that will find a way to reuse them.

Keep your eyes on this case. If the Cleveland folks are successful, as TWI noted, their tactics could set a standard for other communities. It’s also a sign that cities are figuring out ways to fight back and are no longer willing to stand aside as banks dump their trash and walk away.

TWI is on Twitter. Follow Mary Kane’s ongoing coverage of the housing crisis here.

Discussion & Comments (0)

    Recent Articles

    • Things You Should Know about North America

      Things You Should Know about North America

      Get to know more about North America.

    • Eurovision 2010 Paula Seling Unpredictable Contest

      Eurovision 2010 Paula Seling Unpredictable Contest

      Paula Seling's experience on the Eurovision stage led her to declare that "Eurovision is an unpredictable contest". Which may explain the success of the young Lena from Germany, about whom the predictions before the event did not offer much chances for victory.

    • VIPRow.me - The Best Sports Streaming Website Today

      VIPRow.me - The Best Sports Streaming Website Today

      Have you ever contemplated creating a user-friendly site dedicated to sports-related free live streaming channels?

    • Learn How To Download, Install, And Use The Xnxubd 2022 Frame App

      Learn How To Download, Install, And Use The Xnxubd 2022 Frame App

      XNXUBD 2022 Nvidia users are able to watch thousands of videos and other contents online. XNXUBD 2022 Nvidia New is a piece of software that enables people to watch videos online without having to pay for memberships. On a graphics card, the XNXubd also provides some of the best gaming and virtual reality experiences.

    • Xvideostudio Video Editor Apk Free Download For Pc Full Version In 2022

      Xvideostudio Video Editor Apk Free Download For Pc Full Version In 2022

      A new edition of the Video Editor Apk for xVideostudio.Video Studio has all the latest features, including support for multiple video download formats in HD, FHD, and even 4K resolutions.

    • 9 Best Lotion For Masturbation - Popular Choice For 2022

      9 Best Lotion For Masturbation - Popular Choice For 2022

      Masturbation is a common activity for men and women. It's a natural and risk-free way to explore your body, experience pleasure, and release sexual tension.

    • Reasons Why You Need To Stop Watching Movies From Sflix

      Reasons Why You Need To Stop Watching Movies From Sflix

      Without having to sign up or pay anything, you can watch movies online for free with SFlix. It has more than 10,000 movies and television shows.

    • Coi Leray Mom And Dad's Family History & Wife, Explained

      Coi Leray Mom And Dad's Family History & Wife, Explained

      Coi Leray Collins (born May 11, 1997) is a rapper from the United States. Leray started publishing songs to SoundCloud in 2014, and in 2018 she released her breakthrough track "Huddy" as well as her first mixtape, Everythingcoz.

    • Listen And Download Music On MyFreeMP3 For Free

      Listen And Download Music On MyFreeMP3 For Free

      Are you in a bind and looking for a place to obtain free mp3 songs? Never again will you need to bother, since this article has everything necessary to obtain your solution. Download free music from MyfreeMP3.com, one of the world's most popular websites.