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Cleveland sues 21 banks for mortgage mess

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jfalco1

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Freshman Member
Joined
Nov 15, 2007
Professional Status
Certified General Appraiser
State
Michigan
CLEVELAND — The city of Cleveland, an epicenter of the nation's home foreclosure crisis, has sued 21 banks and claimed their subprime lending practices created a public nuisance that hurt property values and city tax collections.
The lawsuit was filed Thursday in Cuyahoga County Common Pleas Court, and seeks to recover hundreds of millions of dollars in damages, including lost taxes from devalued property and money spent demolishing and boarding up thousands of abandoned houses.
Cleveland Mayor Frank Jackson said Friday that the buying and selling of high-interest mortgages by some of the nation's biggest banks had devastated city neighborhoods struggling to recover after the loss of manufacturing jobs.
"We have to hold accountable those who are responsible," Jackson said at a City Hall news conference.
 
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Jason Barber

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Joined
Feb 16, 2006
Professional Status
Certified Residential Appraiser
State
Michigan
It is quite ironic how so many newspaper articles seem to paint the picture of their city being the "hardest hit" by foreclosures in the country.

I have the word "foreclosure" set up as a Google Alert and get 20-30 hits per day on similar sounding stories.

If this Cleveland lawsuit works for the plantiff, I can just imagine the precedence it will set in the legal world and the flood gates will be wide open.
 

jfalco1

Thread Starter
Freshman Member
Joined
Nov 15, 2007
Professional Status
Certified General Appraiser
State
Michigan
Don't the borrowers have some kind of accountability, they knew they were getting 110% mortgages and what the arms were and that they expire, its a chance you take. These borrowers aren't that uninformed.
 

Kali the Boston Terrier

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Joined
Jul 7, 2003
Professional Status
Certified General Appraiser
State
Michigan
It's kind of a joke, I'm sure the City isn't offering to pay people the increase in taxes they got from the sales boom...that was a direct result of these loans.

What do they say good economics is bad politics, and bad economics is usually good politics. Sounds like more of the same...Scopes Predatory Lending Trial?
 

jfalco1

Thread Starter
Freshman Member
Joined
Nov 15, 2007
Professional Status
Certified General Appraiser
State
Michigan
Maybe the city should sue the borrowers over bad mortgage decisions too. Or better yet, maybe we can sue for the mortgage mess which has left us high and dry on our careers. Open the flood gates!
 

Kali the Boston Terrier

Senior Member
Joined
Jul 7, 2003
Professional Status
Certified General Appraiser
State
Michigan
We'll just sue one another until the one the tall stacks win...wait that sounds like poker. Nevermind already created.
 
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