Youngstown, OH Has Close to $1M in Foreclosure Bond Money
On October 21, Vindy.com published an article titled Youngstown Has $870,000 In Foreclosure Bond Money.
Youngstown has $870,000 in foreclosure bond money
In its new foreclosure bond legislation, the city has an effective tool to fight urban blight, said City Law Director Anthony Farris.
The city has $870,000 in foreclosure bond money on hand, having accumulated that sum since it began collecting such payments in April, Farris said at a news conference this morning.
Under an amendment to the vacant property registry, which city council unanimously passed in January, those filing foreclosures on vacant homes or homes that become vacant, must post a $10,000 cash bond.
Failure to comply is a first degree misdemeanor criminal offense.
The bond is somewhat similar to the security deposit a tenant pays to a landlord before renting an apartment.
The bond can be used to pay any grass-cutting, boarding or demolition costs the city might incur.
As is the case with the security deposit, the party filing the foreclosure gets backs whatever money the city doesn’t spend from the $10,000 when the foreclosure proceeding ends. However, the city retains a $200 administrative fee from the foreclosure bond.
Since 2004, there have been more than 5,200 foreclosures in the city, according to the Mahoning Valley Organizing Collaborative, which urged city officials to enact the foreclosure bond. The news conference was in MVOC’s downtown Youngstown office.
The foreclosure bond legislation here is based on laws in Canton, Ohio, and Springfield, Mass.
To view the online article, please click here.
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