Stay in your house no matter what!
For one thing, the banksters lost all the paperwork; as Rep. Marcy Kaptur says: "Show me the note!". But then, if the banksters foreclose and you leave, you could get stuck with maintaining the property anyhow, in a "bank walkaway":
Mercy James thought she had lost her rental property here to foreclosure....
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.... 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.
“I thought, ‘What kind of game is this?’ ” Ms. James, 41, said while picking at trash at the house, now so worthless the city plans to demolish it — another bill for which she will be liable.
City officials and housing advocates here and in cities as varied as Buffalo, Kansas City, Mo., and Jacksonville, Fla., say they are seeing an unsettling development: Banks are quietly declining to take possession of properties at the end of the foreclosure process, most often because the cost of the ordeal — from legal fees to maintenance — exceeds the diminishing value of the real estate.
The so-called bank walkaways rarely mean relief for the property owners, caught unaware months after the fact, and often mean additional financial burdens and bureaucratic headaches. Technically, they still owe on the mortgage, but as a practicality, rarely would a mortgage holder receive any more payments on the loan. The way mortgages are bundled and resold, it can be enormously time-consuming just trying to determine what company holds the loan on a property thought to be in foreclosure.
Which is entirely the banksters own fault. They ran their business that way, slicing and dicing derivatives, and if they can't figure out who, technically, owns the house, why not keep possession of it so the property stays in good shape?
In Ms. James’s case, the company that was most recently servicing her loan is now defunct. Its parent company filed for bankruptcy and dissolved. And the original bank that sold her the loan said it could not find a record of it.
Which is why we need to see the loan tapes.
“It is what some of us think is the next wave of the crisis,” said Kermit Lind, a clinical professor at the Cleveland-Marshall College of Law and an expert on foreclosure law.
Crisis? For who? As long as people stay in their houses, there is no crisis for them.
There might be a crisis for the banksters. But suppose they try to teach us a lesson and crash the economy worse than they already have, and we're all eating cat food. Would you rather do that in motel room, or your own house?
NOTE BooMan, as a fully paid up member of the "creative" [cough] "class", completely misses the point. Not only does he blame the problem -- if it is indeed a problem -- on the Republicans, when it's clearly a systemic, bipartisanMR SUBLIMINAL Haw! problem, he misses the opportunities for homeowners! Then again, homeowners were thrown under the bus a long time ago. Nothing for them NOW NOW NOW NOW!