Watch CBS News

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 This material may not be published, broadcast, rewritten, or redistributed.)

View CBS News In
CBS News App Open
Chrome Safari Continue
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.