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Privatizing the Foreclosure Sale

I have been talking to people about this for over a year. Running the foreclosure auction through a private firm or individual to streamline it. There is already law on the books that allows for this possibility. It looks like someone has had the same idea. This email went out to members of the Columbus Bar Association yesterday.......

The United States District Court for the Southern District of Ohio will be appointing Special Masters in foreclosure cases on a case-by-case basis. Compensation is $500 per foreclosure case. If interested in this opportunity, please see the Special Masters Appointment (pdf) opportunity on the Job Announcement page of the Court's web site.

Unfortunately, you need to be an attorney with at least 5 years experience, but what this means is that the Courts can appoint individuals to manage the process instead of the sheriff.

Posted by Rich Kruse on 05/17/2007 05:55 AM

Comments (6)

special master, foreclosure, columbus oh

Originally posted at: Asset Management & Recovery: Privatizing the Foreclosure Sale

This post has been included in Ohio Information Franklin County, OH Information Columbus, OH Information

6 Comments on Privatizing the Foreclosure Sale

MAY

2007

Yeah!.....I think.

MAY

2007

Good Evening Rich,

Here in Nevada the foreclosure sale is most often conducted by private companies, often in their office. I've never known them to use a professional auctioneer.

Bill

Rich,

in your opinion, what is this going to accomplish?

sean safholm

www.youronlylender.com

Bill - In Ohio, the foreclosure auction can be managed by the sheriff, an appointed officer of the court (attorney) or licensed and bonded auctioneer.

Sean - Back a couple of years ago in Columbus, OH (Franklin County) there were about 100 properties going to sheriff auction every week. Today there are over 200. There has not been a change in staffing. By splitting the work between the sheriff and a few private firms, it will split the work up and possibly make the process move a little faster. I think it is a capacity issue for the county sheriffs, but there will likey be streamlining in the private sector. One of the major complaints here is that the process takes so long. Since the files are going to be processed on a flat rate, it would make sense for the private firms to "get them in and get them out".

MAY

2007

I read this last week, and wanted to think about it before I offered up my two cents.

Good for the lenders. Bad for the Borrowers.

For judicial foreclosure jurisdictions, I see this as a bad thing. The Office of Sheriff is an elected position, and though the Fair Foreclosure Act imposes guidelines... the judicial process affords a Sheriff and Judge some discretion. That discretion is an essential element of needed oversight.

I think corporations in general have waaaay too much power and are largely unaccountable for their anti-social behavior in the name of profit, requiring legislative intervention. I foresee homeowners being foreclosed and tossed by a 'machine' intolerant of mitigating circumstances. Efficient? Perhaps, but if we have too much "ready, fire, aim" in the name of efficiency, I see this as being more litigious.

The way I read it, David, this is all going to be in the Federal system and has the potential to be streamlined across the US. Just a theory on that. Unless waivers are granted, the Masters all need to be attorneys and are officers of the Court.

I can see that the Judge has some discretion and that will not end. The Sheriff and Special Masters are going to be bound by the decision from the Courts, just as the Sheriff currently is. Any mitigating circumstances should be heard and considered prior to a ruling and not by the person or entity carrying out the order of the Court.

Ready, Aim, Follow the Court Order should be system. Too much discretion will create problems and create a need for more oversight.

That's just how I see it though.

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