Backgrounder: Cities Try to Recoup Foreclosure Costs From Lenders/Developers

Backgrounder: Cities Try to Recoup Foreclosure Costs From Lenders/Developers

The current financial crisis began quietly in the subprime mortgage market and quickly attained a level unimaginable just a short time ago. Nearly two years later, large cities across our nation are dealing with a host of issues related to the rising tide of foreclosures. Several cities have tried to recoup their costs related to the epidemic of foreclosures, both in federal and state court, and under a variety of legal theories, against the lenders and developers that helped create the problem. City of Cleveland v. Deutsche Bank, No. CV08646970 (N.D. Ohio 2008); Baltimore v. Wells Fargo Bank and Wells Fargo Financial Leasing, No. L08CV062 (D. Md.); City of Buffalo and Mayor Byron W. Brown v. ABN Amro Mortgage Co., No. 2008002200 (Erie Co., N.Y., Sup. Ct. 2008); City of Minneapolis v. TJ Waconia, No. 27CV0887880 (Hennepin Co., Minn., Dist. Ct. 2008). This backgrounder briefly examines each of those cases.

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