US Bancorp.: Degrading Neighborhoods One REO At A Time!
Apparently the juggernaut US Bank has come under fire recently for allowing properties upon which they have foreclosed become dilapidated and unmarketable. While this is bad, it is not as shocking as what I am about to say next: according to the National Fair Housing Alliance the neglect and lack of maintenance on these bank held properties is happening in minority neighborhoods, and not in predominantly white neighborhoods…
On Tuesday the National Fair Housing Alliance, along with a few other member organizations, filed a complaint with the department of housing and urban development (HUD) marking the beginning of what will surely be a legal battle. The organizations’ complaint is based around their evaluation of 177 foreclosed, and bank retained, homes for foreclosure maintenance practices in 7 cities. Through this evaluation it was obvious to the organizations what was going on, and that something had to be done.
The group reportedly found that properties in minority neighborhoods were more likely to have trash piled-up in, and boarded/broken doors and windows.
US Bank responded to the allegations stating that they are one of the largest corporate trustees for investment pools that own mortgage loans, and that they are not responsible for the maintenance of subject properties in this case.
The validity of the allegations is something that HUD is refusing to comment on until they investigate it further, but one thing is certain: This will not be the last complaint filed for this. Wells Fargo was charged for this last week, and only time will tell who is going to get hit next week.
On a slightly cynical note are we really surprised that the same banks that didn’t help homeowners prior to foreclosure would help communities of homeowners after foreclosures? This is just a reminder that the banks really only care about the bottom line and that any cost that can be cut will be cut.
John is the Vice President here at JohnHart, and as such is responsible for managing and directing the firm towards obtaining its ultimate goals.
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Looking for distressed properties at wholesale email tlawrence@consultant.com
It will be interesting to see who is actually responsible for maintaining these properties.
I have seen so many foreclosed properties in seriously bad shape in a wide variety of neighborhoods regardless of the neighborhood economic status. So I don’t buy the premise that the banks are to blame, solely. The banks should share some of the responsibility for dilapidated and unsaleable properties but there’s enough blame to go around, including first and foremost the owners who have foreclosed on their mortgage obligations, turned their keys in and walked away from the properties and in many cases damaged them on the way out.
Learning more and more about the cost effects I am sure there’s a program offering the banks support in finding ways to take a Social Community Responsibility approach I listen to a great speaker Ms. Lawrence on last week she has spoken to the community at large about ways to form a positive from a negative conditions maybe the banks she contact her 980-224-0096
I sold a car yesterday here in CA and the buyer presented me with a $3,000.00 cashier’s check from this bank. Two branches, one in a grocery store couldn’t cash the check, they said they had not enough money! A third branch finally cashed the check and charged me $5 do convert their OWN cashier’s check into cash. I’d say they’re in big trouble. A teller at one bank offered to order me the cash next Friday and I asked do you mean tomorrow, today May 11th, and NO, she meant’ a week from today May 18th!