Mass. Foreclosure Laws Violate Constitution, 1st Circ. Hears

Law360, New York (May 30, 2013, 5:57 PM EDT) -- A group of banks seeking to block the city of Springfield, Mass., from implementing anti-foreclosure ordinances urged the First Circuit on Tuesday to reverse a lower court's dismissal of their case, saying the ordinances are preempted by state law and violate the U.S. Constitution.

U.S. District Judge Michael A. Ponsor ruled in July that two ordinances requiring mediation before foreclosure of residential properties and maintenance of said properties by the mortgagee are not preempted by state foreclosure regulations.

The banks appealed to the First Circuit to determine whether the ordinances are preempted by existing state laws and violate the Contracts Clause...

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