Banks Starting to Walk Away on Foreclosures

By
Real Estate Broker/Owner with Lazarus Realty

Has anybody read/posted this article from the NY Times/

March 30, 2009 NY Times

By SUSAN SAULNY

SOUTH BEND, Ind. — Mercy James thought she had lost her rental property here to foreclosure. A date for a sheriff’s sale had been set, and notices about the foreclosure process were piling up in her mailbox.

Ms. James had the tenants move out, and soon her white house at the corner of Thomas and Maple Streets fell into the hands of looters and vandals, and then, into disrepair. Dejected and broke, Ms. James said she salvaged but a lesson from her loss.

So imagine her surprise when the City of South Bend contacted her recently, demanding that she resume maintenance on the property. The sheriff’s sale had been canceled at the last minute, leaving the property title — and a world of trouble — in her name.  READ THE ENTIRE STORY

____________________________________

ATTENTION COPYRIGHT POLICE:  I Thought this was worth posting and I dont know the protocol for inserting snippets from an article with a link.  I hope this OK.  

if you don't think so -- FEEL FREE TO FLAG -- I would just like the post to remain.

 

 

 

 

Lazarus Realty
Lazarus

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559.301.1647
559.438.7475

1319 W Bullard #4 -- Fresno CA -- 93711

© Randy "Lazarus" McAtee

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Rainmaker
383,737
Matt Listro
National Credit Fixers - Matt Listro - Vernon, CT
Your Credit Repair Expert

Hi Randy: That was really interesting.  That poor woman - she thought she was giving the house back and wound up with a world of trouble!

:)

Mar 30, 2009 03:08 AM #1
Rainmaker
75,113
Amanda Wilson
EWM International Realtors, Inc. - Fort Lauderdale, FL
Real Estate Advisor

thanks Randy...a good read...it's really incredible what is going on here...communication could be a viable key!!

Mar 30, 2009 03:09 AM #2
Rainmaker
1,264,670
Chuck Carstensen
RE/MAX Results - Elk River, MN
Minnesota Real Estate Expert

I did not realize banks were walking away from foreclosures. 

Mar 30, 2009 03:14 AM #3
Rainmaker
672,229
Jim & Maria Hart
Brand Name Real Estate - Charleston, SC
Charleston, SC Real Estate

You'd think that the bank would let her know something.  Well, maybe not.  But wouldn't it behoove the city to send a letter or some sort of notice to the owner before it gets that bad?  I wonder how prevalent this is going to become.

Mar 30, 2009 03:21 AM #4
Rainmaker
159,361
Suzanne Gantner
Sky Realty, Central Texas Real Estate - Round Rock, TX
GRI, E-Pro, SRES, SRS, ABR

I know this to be true.  I have a listing now that they haven't heard from the bank in 6 months and the seller hasn't made a payment in a year. It was supposedly going to foreclosure and they never heard another word.  We got an offer and for 4 months they did nothing.  So it doesn't surprise me our banks are in such a rotten state...No body is in charge.

Mar 30, 2009 03:22 AM #5
Rainmaker
341,671
Eric Reid
Renaissance Realty Group of Keller Williams Atlanta Partners - Lawrenceville, GA

The are not Walk Away from the foreclosure -- the are not completing the foreclosure action at this time... why they don't want to take the asset into inventor or the title can't be cleared. What does this mean to the "owner" she now goes into her 10, 11. 12 13th month of pregnancy so to speak.

They will come after the title / Foreclosure action sometime some where but for today that just moved past it for easier pickings.

Mar 30, 2009 03:27 AM #6
Ambassador
2,081,767
Fernando Herboso - Broker for Maxus Realty Group
Maxus Realty Group - Broker 301-246-0001 - Gaithersburg, MD
301-246-0001 Serving Maryland, DC and Northern VA

Randy:  Your post is fine but what is a problem that is becoming more and more so.. .is your reluctant to POST something helpful because you fear that the SELF=APPOINTED POLICE in this forum have propagated a seed of fear among agents like you from allowing them to express themselves freely.. .

We need your input and we need you!

Thank you for your post!

 

Mar 30, 2009 03:27 AM #7
Rainmaker
593,168
William J. Archambault, Jr.
The Real Estate Investment Institute - Houston, TX

Randy,

And, another consumer stops making payments on their mortgage only to become a victim! Ya, right.

This is news to me, but when I started in finance back in 1969 the first thing I was taught about collections was "LOOK AT THE COLLATERAL!" We'll probably see alot more of this.

Thanks for the heads up.

Bill

Mar 30, 2009 03:29 AM #8
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Rainmaker
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Randy "Lazarus" McAtee

Owner/Broker, Lazarus Realty, Fresno California
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