Homes Foreclosed: Banks Being Sued by Cities — The Latest Fallout from the Foreclosure Crisis

Baltimore is suing Wells Fargo bank, contending that their lending practices during the height of the real estate boom has led to what is now a wave of foreclosures in communities throughout their cities. The New York Times article, Baltimore Is Suing Bank Over Foreclosure Crisis, states the case this way:

Baltimore’s mayor and City Council are suing Wells Fargo Bank, contending that its lending practices discriminated against black borrowers and led to a wave of foreclosures that has reduced city tax revenues and increased its costs.

Foreclosure Crisis: Banks Being Sued by Cities

As the foreclosure crisis continues and more and more cities grapple with declining tax revenues, the most obvious question is will other cities follow suit (pun fully intended)? And, if they do, who will pay? Banks are failing and/or being bailed out by the government every day. Will taxpayers once again be on the hook as cities struggle to stabilize neighborhoods racked by foreclosures?

What do you think?

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