City councilors in Springfield Massachusetts have voted to reject a settlement with several banks over a foreclosure ordinance.
The vote means the city can implement the ordinance even if the banks continue to challenge its legality in the federal appeals court. The ordinance, passed in 2011, and upheld by a federal judge last year requires banks to post a$10,000 bond to maintain and secure vacant foreclosed property. City councilor Melvin Edwards said city taxpayers will no longer have to pay to eradicate the blight that results from foreclosure.
The ordinance also requires a mediation program for people who are risk of losing their home to foreclosure.