Banks Find Loophole To Avoid Cleaning Up Richmond Foreclosures

RICHMOND (CBS 5) – Richmond has some of the most strict laws about taking care of foreclosed properties, but residents say three banks have found a way around those regulations.

Three foreclosed homes on Richmond’s Lucas Street recently became a dumping ground after drug dealers took the place of ousted residents. Neighbors said trash had reach neck height, without the banks doing anything to stop it the trash dumping.

“Even construction trucks had come through here… anything from dead animals to sanitation issues,” said Richmond resident T.J. Taylor.

Banks are supposed to board up or maintain foreclosed homes in Richmond – or face fines of up to $1,000 each day. But city code enforcement said the banks aren’t paying because they have been leaving the homes in the name of the foreclosed homeowner.

KCBS’ Chris Filippi Reports:

“The bank is very often slow or downright unwilling to attach their name to a property,” said Richmond Police Chief Chris Magnus.

Richmond Code Enforcement told CBS 5 that the worst offenders are Deutsche Bank, followed closely by Bank of America and Wells Fargo.

At a meeting Tuesday, Richmond residents pledged to pull their money out of banks that fail to take responsibility for the foreclosed homes.

(Copyright 2011 by CBS San Francisco. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

  • francis

    loophole to take your money thats a good one

  • francis

    take your trash or well get your cash

  • Chuck

    The city should take the property as immanet domain and sell the property.
    Since the property title is in the old owners name they get the tax rite off.
    and the banks get nothing

  • Road Warrior Hawk

    Chuck is right. If ever there was an appropriate use of imminent domain, this is one. As far as the other little niceties the piece describes – well, just look at the location and the inhabitants therein. Doesn’t take a genius to figure that out.

    ‘Oooohhh – he’s a racist’…

  • Eric Johnson

    I love how they end it saying that this is a fire hazard all it will take is an ash or a spark.

  • Tyrone

    Move out of Richmond…this is a hell-hole to live in. I m glad that I moved out of there to Blackhawk. Much nicer place to raise a family, PEROID!

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