It's time for a little socialism for the normal, regular, non-unlicensed plumbers among us. The banking industry continues to destroy lives & litter the landscape of America. First, they manipulate people into loans that are just not feasible, yes, predatory lending, not buyer greed; then, they walk away from foreclosures that they themselves initiated. WTF? Maybe we need some BIG socialism, not a little.
City officials and housing advocates here and in cities as varied as Buffalo, Kansas City, Mo., and Jacksonville, Fla., say they are seeing an unsettling development: Banks are quietly declining to take possession of properties at the end of the foreclosure process, most often because the cost of the ordeal — from legal fees to maintenance — exceeds the diminishing value of the real estate.
The so-called bank walkaways rarely mean relief for the property owners, caught unaware months after the fact, and often mean additional financial burdens and bureaucratic headaches. Technically, they still owe on the mortgage, but as a practicality, rarely would a mortgage holder receive any more payments on the loan. The way mortgages are bundled and resold, it can be enormously time-consuming just trying to determine what company holds the loan on a property thought to be in foreclosure.
In Ms. James’s case, the company that was most recently servicing her loan is now defunct. Its parent company filed for bankruptcy and dissolved. And the original bank that sold her the loan said it could not find a record of it.
What a way to organize an economy. I'm not a Phd. in economics, of course, so I don't know a damned thing & should just shut up & let the experts who created the problem, fix it. I'm not holding my breath. My emphases.
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