Springfield, Massachusetts, passes ordinance requiring mortgage lenders to engage in mediation with homeowners facing foreclosure, or face US$300/day fine; second ordinance requires lenders to place US$10,000 bond to secure foreclosed, vacant properties

Michelle Rivera

SPRINGFIELD, Massachusetts , August 23, 2011 (Associated Press) – The city council in Springfield, Mass. has passed what advocates are calling the toughest municipal anti-foreclosure legislation in the country.

The council on Monday voted unanimously to approve an ordinance that requires mortgage lenders to engage in mediation with homeowners facing foreclosure, or face a $300 per day fine.

The council also passed a second ordinance requiring lenders to place a $10,000 bond to secure and maintain any of their foreclosed and vacant properties.

Advocates say the ordinances will help more people stay in their homes, protect them from predatory lenders, and fight urban blight.

Both ordinances were proposed by City Councilor Amaad Rivera and backed by a community group called Springfield No One Leaves.

Supporters say the ordinances will survive legal challenges.

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