Lenders may face up to $30,000 if they screw up!
The Taunton Gazette-
The Springfield City Council has passed what advocates are calling the toughest municipal anti-foreclosure legislation in the country.
The council on Monday voted unanimously to approve an ordinance that requires mortgage lenders to engage in mediation with homeowners facing foreclosure, or face a $300 per day fine.
The council also passed a second ordinance requiring lenders to place a $10,000 bond to secure and maintain any of their foreclosed and vacant properties.
Via Housing Wire-
“If they don’t negotiate in the first 45 days, the process stretches out to 150 days,” explained Springfield City Councilor Amaad Rivera, who proposed the ordinance. A failure to mediate within the 150-day period easily amounts to $31,500 in fines, with the offender having to pay $300 per day after the initial 45-day period.