U.S. Bank Called Slum Lord By L.A. City Attorney's Office
Los Angeles, CA -
The Los Angeles City Attorney's office has labels the nations fifth largest commercial bank, U.S. Bank, a slum lord.
The city is accusing U.S. Bank of neglect on more than 170 foreclosed properties by failing to do upkeep and maintenance causing them to become an eye sore and driving down property values.
This accusation is similar to the one made against Deutche Bank last year.
According to Realty Trac, there are roughly 620,000 foreclosed properties in the country that are now owned by the lender, otherwise known as REO, real estate owned.
The city says the damages could be in the "hundreds of millions" regarding the complaint the city attorney's office filed.
For its part, U.S. Bank says the city has targeted the wrong party. According to the bank's spokesperson, Tom Joyce, the servicer of the loan is responsible for the upkeep, and that the bank does not service (collected payments) on loans, it has a third party provide that service.