In what may end up being a precedent-setting test case, the Star Tribune is reporting that a northern Minneapolis neighborhood is suing CitiMortgage over a foreclosed property that has remained vacant, alleging that the deteriorating state of the property is bringing down their property values.

The lawsuit, filed by the non-profit Foreclosure Relief Law Project, alleges “negligent and improvident lending practices” were used to finance the purchase of the property on 31st Avenue N. Located in what the Star Tribune calls the “epicenter of the Twin Cities foreclosure crisis,” the empty two-story house has garnered numerous 911 calls to police and fire departments, and has been tagged for un-mowed grass, weeds and rubbish.

The neighborhood has attempted to contact the lender but to no avail. Prentiss Cox, a law professor at the University of Minnesota, told the Star Tribune that one of the biggest initial hurdles the lawsuit faces is establishing that the neighborhood “has standing to sue as an entity harmed by the mortgage deal.”

The cities of Baltimore and Cleveland have recently sued national lenders to recover millions of dollars lost due to increased foreclosure activity from the deceptive lending practices of the recent past.

RealtyTrac will continue to follow this story as it progresses through the legal system. Stay tuned!