Looks like some banks have stolen some ideas from their own customers…after months of worry about homeowners walking away from foreclosed properties, more and more banks are now apparently doing the same thing, leaving the property owner holding the bag.
According to a New York Times report, “the so-called bank walkaways rarely mean reflief for the property owners, caught unaware months after the fact, and often mean additional financial burdens and bureaucratic headaches.”
The report highlights the case of a woman who had lost her rental property to a foreclosure.
Well, she thought she had, anyway.
Turns out that even after a date for a sheriff’s sale had been set,and after her tenants had already left, the city in which she resides contacted her to demand that “she resume maintenance on the property.”
Seems the sale had been called off and that meant the property title, despite the foreclosure, remained in the woman’s name!
And you thought banks couldn’t come up with even more ways to screw their customers!
Says one lawyer quoted in the piece, “the soft housing market and the vandalism that often occurs when a house sits empty are the two main factors influencing the mortgage holders’ decision to walk away.”
Says another person quoted, “the whole purpose of foreclosure is to take title of the property, sell it and recoup what money you can. It’s just a sign of the times that things are so bad no one wants to take possession of the property.”
The current economic disaster is bringing out the best in some people and institutions, but, more often than not it would seem, it is bringing out the worst.
Housing Crisis Drives GM Boss Away
Meantime, who would have thought even six months ago that the so-called sub-prime mortgage mess (which never really was about the mortgages as much as it was about the investment bundles made of these mortgages that no one really understands) would lead to the removal of the head of General Motors?
Clearly, Obama is in the driver’s seat here and apparently recognized a little appreciated fact of American business: just being a majority shareholder in a company means nothing unless you can replace the company’s Board of Directors.
Which is pretty much what the Obama administration set out to do with GM in exchange for an infusion of even more taxpayer dollars.
In the late 50s, Americans were promised two cars in every garage as pent-up demand for consumer goods exploded in the aftermath of Word War Two.
Who would have thought that we’d get to the point where, not only can’t many Americans afford two cars, but the company that makes a lot of those cars may go bankrupt and there is no garage anyway because the occupant lost it to foreclosure?