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Should Banks Pay $20K Per Foreclosure? Assemblyman Says ‘Yes’

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(credit: AP/FILE)

(credit: AP/FILE)

LOS ANGELES (CBS/AP) — A San Fernando Valley state assemblyman says banks should cough up $20,000 every time they decide to foreclose on a home in California.

Assemblyman Bob Blumenfield (D-San Fernando Valley) released a fact sheet on Wednesday that says the bill would help make up for costs associated with foreclosures, such as property tax losses.

The money collected would be used for school districts, police and fire departments, small-business loans and other applications.

Amy Schur, who directs advocacy group Alliance of Californians for Community Empowerment, which is supporting the bill, says its language is currently being vetted by the legislature’s legal staff.

Blumenfield spokesman Anthony Matthews did not return a phone call.

A message was left with Mortgage Bankers Association spokesman John Mechem.

(TM and © Copyright 2010 CBS Local Media, a division of CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2010 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)

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