Thursday, December 29, 2011

Delaying foreclosure: Borrowers keep homes without paying - Dec. 28, 2011

Delaying foreclosure: Borrowers keep homes without paying - Dec. 28, 2011
Delinquent borrowers facing foreclosure are learning that they can stay in their homes for years, as long as they're willing to put up a fight. Among the tactics: Challenging the bank's actions, waiting to file paperwork right up until the deadline, requesting the lender dig up original paperwork or, in some extreme cases, declaring bankruptcy.
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I love the use of the word "tactic." First of all, the entity foreclosing is hardly ever "the lender." It is a mortgage servicer. And why is it a "tactic" to expect that when some corporation wants to throw somebody out of their home onto the street, they should be required to prove that they have the legal right to do so? Are we just a nation of sheep who shamble out into the cold whenever somebody demands it?

Unfortunately many judges don't care much about these problems when the banks can't prove up their case, such as a total lack of proof of owning the note, perjured affidavits, backdated paperwork, and other things that ordinary people would get thrown in jail over.

3 comments:

Anonymous said...

People who stay in homes undergoing foreclosure for years often don't maintain the properties, causing blight and lowering property values in the surrounding neighborhoods, said Dunn.

1. and the logical fallacy is the false assumption that the bank would maintain the property after a foreclosure

2. "lowering property values in surrounding neighborhoods" - doesn't foreclosure lower the value of neighboring property?

3. If the banks cannot establish a right to foreclose on properties targeted for foreclosure, then what is the quality of title going to be for those that continue to pay? If the banks are unable to prove right of enforcement then they can't very well effect a release.

pvtgov said...

Speaking of sheep, Gandhi's words to the wise:

"Blaming the wolf will not help the sheep much. The sheep must learn not to fall into the clutches of the wolf."

Corporate Officer's Manual (1894) said...

Although stupid and lazy, consumers are devious and cunning, and bear considerable watching.