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NY lawmaker urges banks to maintain foreclosed properties

May 11, 2008

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NEW YORK - New York lawmakers say that lending institutions that own foreclosed properties in the state should be responsible for maintaining them.

The lawmakers released a report Sunday on the impact of the subprime mortgage crisis on property values in New York City and surrounding areas.

The report released by state Senator Jeff Klein's office says over 3.5 million homes were devalued in the state last year due to foreclosures. The report says Brooklyn first in the New York City area, with over 740,000 devalued homes. Klein, who represents parts of the Bronx and Westchester County, says property values near foreclosed homes dropped by about $5,000 per home.

Klein has proposed a bill that would allow municipalities to enforce maintenance standards for foreclosed properties owned by financial institutions.