The Massachusetts Senate has approved a bill that would allow cities to force banks to pay for the upkeep on foreclosed properties.
In the midst of the foreclosure crisis in 2011, Springfield approved an ordinance that required banks to post a $10,000 bond to maintain each property taken in foreclosure. But the ordinance was later struck down by the state’s highest court that found it conflicted with state law.
Mayor Domenic Sarno said the city is just trying to get banks to be responsible property-owners.
" Wall Street received their bailout, but Main Street was left to deal with the fallout," said Sarno when he signed the foreclosure ordinance.
Critics of the state legislation say it will discourage banks from lending in cities that adopt the foreclosure rules and generally increase the cost of borrowing.
