Cincinnati sues Deutsche, Wells Fargo
Cincinnati Enquirer Wednesday:
Cincinnati wants Deutsche Bank and Wells Fargo to pay for what officials say is neglect of foreclosed-upon properties that’s worsening blight in city neighborhoods.
The banks own more than 100 properties in Hamilton County. Representatives appear often in local courts to prosecute foreclosure actions against property owners, the city says in a lawsuit, but don’t show up when Cincinnati asks them to maintain abandoned properties titled to them.
The city wants repayment for boarding up, demolishing and the other work done to Deutsche and Wells Fargo properties. The suit didn’t specify an amount.
“This lawsuit is one attempt to end the abuse of our local neighborhoods and the loss of value associated with the foreclosure crisis,†according to a statement released by the city Tuesday.
Deutsche Bank, in an Enquirer analysis published last year, had bought the most foreclosed properties in Hamilton County in 2007 – 265. The German banking company didn’t own even one parcel in the county three years before. But Deutsche officials denied owning any houses here, saying the bank acts only as a trustee for investment groups that buy up sub-prime mortgages.
(h/t Safeguard Properties All Client Alerts, which links Cincinnati’s suit to the one filed by Neighborhiood Progress in Cleveland Housing Court two weeks ago.)
Update: Just got an email from Frank Ford at Neighborhood Progress about the status of that Housing Court suit against Deutsche and Wells:
… on December 15th Judge Pianka issued a Temporary Restraining Order (TRO) against Deutsche and Wells Fargo to stop them from selling 36 vacant properties unless and until the “Public Nuisance” inherent in these vacant properties has been abated by either bringing the properties up to Code or by properly demolishing the property. This was a first step in the lawsuit we brought on behalf of six neighborhood organizations in an attempt to hold these banks accountable for the damage their blighted properties are causing to these neighborhoods and their residents. A hearing was scheduled for this Monday, December 29th at 10AM in Cleveland Housing Court (13th Floor of the Justice Cntr) to determine whether the TRO would be extended to a Preliminary Injunction.
Here are the latest developments.
1) Deutsche has filed a request in Federal Court to have their case removed from Housing Court to Federal Court. It’s actually more than a “request” - by filing, their unilateral action does (for the time being) remove the case to Federal Court. Our attorneys are exploring our options for responding.
2) Wells Fargo has tentatively agreed to extend the TRO for a couple of months - stipulating that they will not sell the subject properties. This is still only tentative and we hope to know for sure by later today. As of this point (Friday afternoon), Wells is not seeking to have their case removed to Federal Court. But even that could change before Monday at 10AM.
We plan on still being in Housing Court Monday morning at 10AM - although it is now likely that there will be no formal, public hearing on Monday on any of the substantive issues. There will more likely be only a reporting to the Judge, or his Magistrate, as to the events I have outlined above. Nevertheless, if you would still like to attend, please feel free to do so - at the very least we will do a briefing for everyone on where we stand at that point - both on the TRO as well as the core “public nuisance” aspects of both cases.