The great imponderable of the long housing recession is whether we’d already be in a recovery if politicians hadn’t spent years trying to prevent foreclosures. The latest example of well-intentioned political damage comes from Chicago and new Mayor Rahm Emanuel, whose bad idea could soon go nationwide.
Chicago’s City Council passed an ordinance late last month championed by Mr. Emanuel that changes the definition of a property’s “owner” to include a “mortgagee” or his “assignee” and “agent.” That means banks, mortgage servicers and anyone else with a financial interest in a vacant property could be held liable for its upkeep—even if they haven’t foreclosed on the home and don’t legally own the property title.
Read the editorial: http://online.wsj.com/article/SB10001424053111903596904576514264056889284.html?mod=WSJ_topics_obama
