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Chicago Alderman Bob Fioretti on the city’s decision to fine banks if they do not properly maintain the vacant properties they own.
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My agonize over the city is turning them into -- in the windy city is now finding banks will be take responsibility for -- property in the first three months of this year Chicago brought in 6191000.
Dollars from these -- Not chump change joining us now Chicago all the Bob your ready thank you so much for joining us we appreciate your time.
Thanks -- great to be here this afternoon so this idea come from.
We we're looking at a way to hold banks responsible those it -- Ownership of property really is a joint venture until your last mortgage payment is paid off.
And the foreclosure crisis created -- an overwhelming problem for municipalities and especially for the city of Chicago were -- averaging about 20000 foreclosure filings a year for the last couple of few years.
And death we have a 100000 foreclosed properties in the city issue -- and more.
We -- we had to find a way to deal with it and holding.
That banks.
Responsible was I think the only way that we came up with in terms of dealing with the foreclosure crisis problem that we get -- city of Chicago.
-- -- see how could -- -- revenue driver for you at a time when revenue is strike is drying up but what is really want them to do what do you hoping are gonna do in response to this.
Well IAA actually did to maintain the ownership to maintain the property.
It costs -- this citizens of the city of Chicago to maintain beacon properties police services fire services.
You know vacant property all the sudden.
Is taken over people come in there they be taken -- all the copper any any usable items within the property and we were dealing with.
A lot of lot of properties that people who were.
Average citizens middle class citizens.
That it paid all their mortgages that have paid their taxes.
And yet the time for -- -- financing came and the banks wouldn't refinance them so we looked at this we thought this is the best way to maintain the property -- Put it back on the owners -- -- the banks.
So -- subpoenas that debt eastern Cuba buying judge whether the property is being maintained and that it had to run down you find or is it just that there -- no activity how you decide whether or not you should find.
Well we have a lot of ordinance governing now height of -- The over growth whether there.
-- boarded up properly.
And so although there are a lot of factors and yes they they go to court -- -- they're fine they're given a summons and they -- they can contested if they believe it was unfairly.
Given to them.
And in fact the federal agency that oversees -- Fannie Mae and Freddie Mac.
Have sued in federal court because you've gone after them for finds as well right I mean this sort of -- -- -- against the government.
Well you think you know Freddie Mae and both of you know the entity in and of itself was also partially responsible for setting this foreclosure crisis in.
-- in process and moving it forward and so they should be responsible too for that the properties that they -- -- here in the city Chicago.
Are you get any pushed back -- mr.
-- I mean -- the banks mad about this are our Fanny and Freddie mad at you about best.
Well well as you said there's lawsuit in the federal court by them yes and and yes we're hearing from the banks that they think it's unreasonable but.
They were the ones said -- had the shoddy paperwork that had over the wrong appraisals on properties that didn't look at what was being done.
They were partners that started this whole foreclosure crisis happening.
And for the banks to come back and say that they can't they can't refinance some of these properties were legitimate people wanted to stay in their property is wrong.
-- the rock also a lot of people bought houses that he couldn't afford hoping to flip them but that's a whole another discussion there's a lot of units around us planning for every little did -- went another time Ottoman thank you so much for joining us we appreciate it.
Think he's a great engineer.
