Mortgage lender "walkaways" the latest scheme - Las Vegas mortgage borrowers take note

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Services for Real Estate Pros

Dollar signsThe real estate meltdown that continues to churn on has already seen some vein-popping scenarios concocted by many mortgage banks seeking to take advantage of homeowners facing foreclosure. And new ones keep surfacing. One of the latest creations could be called a home loan provider "walkaway", because that's what it really looks like.

When a mortgage lender executes a foreclosure the normal route is to take possession of the property in question and then decide what to do next. Now many of them have begun leaving the property in the former homeowner's name after the foreclosure, basically the exact opposite of what was done before. This is bound to happen when the home has liens attached to it that would cost a good chunk of money to clear. And most of all when the property is underwater, since now the mortgage provider cannot sell it at break-even basis, much less at a profit.

They are in essence forcing ex-homeowners to at least deal with taxes, possibly also with HOA dues and any code violation penalties for as long as possible. People who have already gone through the trauma of a foreclosure now may have to defend themselves against these collection efforts. That while they are living elsewhere and trying to put their lives back together.

Las Vegas valley - with communities like Summerlin, Henderson, Southern Highlands, Anthem, Mountains Edge, Green Valley and North Las Vegas - mortgage borrowers are especially vulnerable to this type of enterprise. Foreclosure rate here is still high and housing values have plunged leaving thousands upon thousands severely underwater. This of course applies to any region in the country, but those mortgage borrowers most at risk live in the hard-hit areas.

At least one state, Ohio, has enacted new laws that will address this obvious abuse mortgage lenders try to administer on unsuspecting homeowners in distress. Nevada, Arizona, California and Florida, the top four in foreclosures, ought for sure to keep a vigilant eye on this type of development and possibly stiffen up their existing laws. Preferably act before it becomes a meaningful problem.

 

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Provided by: 

Esko Kiuru
Mortgage, real estate and apartment industry analyst 

www.BluefoxToday.com - syndicated mortgage, housing and property management blog

eskokiuru@gmail.com
My cell: 702-499-1006

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Topic:
Lending / Financial
Location:
Nevada Clark County Las Vegas Southern Highlands
Groups:
Realtors®
Mortgages
Investors
Las Vegas, NV Area Real Estate Professionals
Tags:
las vegas
henderson
home loan
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summerlin
foreclosure
real estate
mortgage
southern highlands

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Rainmaker
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Lynda Eisenmann
Preferred Home Brokers - Brea, CA
Broker-Owner,CRS,CDPE,GRI,SRES, Brea,CA, Orange Co

Hi Esko,

Question, are you saying that once the lender forecloses, they also recieve the property with the "excess baggage" i.e. liens? Just want to be sure I understand the point.

Thanks.

 

Nov 12, 2009 03:18 PM #1
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Renée Donohue~Home Photography
Savvy Home Pix - Allegan, MI
Western Michigan Real Estate Photographer

I can't say that they shouldn't be responsible for damage done before leaving in the form of a deficiency ~ especially with the percentage of strategic defaults going on.  I do not believe, however, that the homeowner should be responsible for damages, violations and liens that were slapped on after the transfer of ownership via the trustee's sale.

Nov 13, 2009 07:13 AM #2
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George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Esko, this foreclosure mess just seem to create more and more problems and more issues for the Homeowners being foreclosed on.

Nov 13, 2009 10:59 AM #3
Rainmaker
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Esko Kiuru
Bethesda, MD

Lynda,

That's pretty much it.

Nov 13, 2009 01:37 PM #4
Rainmaker
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Esko Kiuru
Bethesda, MD

Renee,

Courts likely have to settle who is responsible for what from what point on.

Nov 13, 2009 01:42 PM #5
Rainmaker
325,921
Esko Kiuru
Bethesda, MD

George,

They are being hounded from many different directions but many are now fighting back.

Nov 13, 2009 01:44 PM #6
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Rainmaker
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