The Madeleine Brand Show

The Madeleine Brand Show is a daily, two-hour program that looks at news and culture through the lens of Southern California. Hosted by Madeleine Brand

LA City Attorney sues US Bank over deteriorating foreclosed homes

by The Madeleine Brand Show

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For sale signs are posted on a foreclosed house on September 15, 2011 in Glendale, California. Kevork Djansezian/Getty Images

The L.A. City Attorney's Office filed a lawsuit against US Bank, alleging that the bank illegally allowed foreclosed homes to deteriorate into slums and "public nuisances". The Los Angeles Times says problems were found with US Bank's handling of 1,500 foreclosures, which included some 150 homes that have fallen into disrepair. The city is seeking an injunction, financial penalties and restitution from the company.

The city stated the bank failed to maintain foreclosed properties, and they've become havens for drugs and prostitution. The bank says it's just the "trustee" on loans, and that the companies that are the "loan servicers" should be keeping up the properties.

Guest:

Stuart Gabriel, director of UCLA’s Ziman Center for Real Estate and professor of finance at UCLA Anderson School of Management

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