“Reuters revealed the plight of people who walked away from their homes not realizing that their names remained on the deed and that they were financially liable for taxes and other bills related to the abandoned property.”
Holding a homeowner responsible for vandalism to a home vacated because the bank has initiated foreclosure is what is ridiculous. Some banks actually lock the homebuyer out of their homes, so that they cannot maintain the premises. If the bank does not intend to follow through on the foreclosure, they should not force the homebuyer out. They need to find a better way to process and handle their loans.
Couldn’t disagree more Huh! Nobody “forced” anybody out. The owners skipped out on their own and failed to live up to their financial obligation. An obligation no one else should have to pay for other than the homeowner.
No, that’s not true. The bank can’t “force” anyone out of a home in Florida until the bank holds the title to the property. Just because the bank sends a notice saying they are starting the procedure doesn’t mean anyone if forced out. I think you need to reexamine the details of what is being reported here.
Sorry, I am not able to sympathize completely with the “poor little homeowner” that bit off more than they could chew (willingly), enjoyed a lifestyle in a home that they couldn’t afford and walked away from a responsibility and contract that they entered into.
Forgive me for not thinking that they (the banks) “They need to find a better way to process and handle their loans”
Sigh. These soundbytes are terribly distracting. Not everyone who faced foreclosure in the last economic collapse “bit off more than they could chew”. Actually it was they people who bit off more than they could chew who partially caused the collapse. But the recession hit everyone – the responsible and the irresponsible. Those who had the misfortune of losing their jobs in the latest recession suffered a double-misfortune if they owned their own homes, since their primary wealth repository plummeted in value at the same time as they lost their jobs.
Don’t forget the banks are the ones who made the bad loans in the first place. They should have known better – in fact, they DID know better! But they didn’t care since they were selling off most of the bad loans. They were just as irresponsible as the homeowners who thought they could ride the market up.
‘Not everyone who faced foreclosure in the last economic collapse “bit off more than they could chew”.’
Unfortunately, too many did. The encouragement by government for peopel toput 3% down or less also helped contribute. Greed of people taking out home equity loans so they could buy their wide screen TV’s, luxury cars and in some cases second homes also contributed. And the worst offenders (many in Nevada) people buying hmes they never intended to occupy as prices were just going straight up and they wanted more of what really didn’t belong to them. Makes me sick.
‘Don’t forget the banks are the ones who made the bad loans in the first place.’
“At the direction of Barney Frank, Chris Dodd, Fannie Mae and Freddie Mac”. That doesn’t tell the full story, and is very misleading. It’s nothing but bank / Wall Street propaganda. Here is “The Rest of the Story”.
Granted, they shouldn’t have lowered the standards like they did. However, if the banks had adhered to those standards, these problems would never have happened. The standards were lowered, but the bankers didn’t even follow THOSE standards (they had their orders from senior management). That’s the real problem. Then they packaged these fraudulent loans, which were NOT legal, with legitimate ones and sold them.
This process continued, with millions going into criminals’ pockets each time this garbage changed hands. It was a game of “hot potato”, and they knew it. Now they’re trying to shift the blame, while they quietly move their ill-gotten wealth to the Cayman Islands.
Shirley, don’t bother. Enough years have passed since the bubble burst. If someone doesn’t know the full truth by now, it’s because they don’t want to know it. Let them keep believing it’s all the gummint’s fault (who, by the way, I agree started the snowball and contributed to the escalation). It doesn’t look like anyone is going to prison at this point, anyway.
April 2, 2013 at 2:37 pm
NCBuyer says:
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My husband and I recently bought a “zombie”. It had been vacant for more than 2 years, though marginally maintained by the holding company since the owner was then deceased. Waited over 6 months for it to finally go to a live auction due to red tape.
I do believe banks need to find a better way to handle foreclosures so they don’t become eye sores and nonviable property because of decay. I don’t blame the homeowner, because of the economy and our government situation. I know too many people who have lost their homes due to being laid off, and ending up upside down on loans due to bad revaluation.
They didn’t end up being upside down because of being laid off. The market made them upside down, but that is completely irrelevant. Regardless of what your house could sell for if you put it on the market, you are still obligated to make your loan payments, period.
I agree. 4 years ago, I moved from a 50k home to a 110k home (living so extravagantly). The 50k price was in 1990, long before the housing bubble. It took over 3 years to get rid of the old place (while paying on both mortgages); I finally settled for 22k, which was a bit less than I still owed on it. I’m thousands in debt because of it (including remodeling costs to try to make it more attractive), but I’m dealing with it and will be paying for a long time, but I don’t walk away from my responsibilities. I don’t think people should get special priveleges, when so many of us are struggling to do right.
I think the banks AND the homeowner’s shared in this mess. I know people who took ‘stated income’ loans, where they then HAD to take an ARM, and lied through their teeth so they could get in on the home craziness and live in a home they KNEW they couldn’t afford. I don’t feel bad for too many people that lost their homes if they had an ARM loan. The lender tells you what your adjustable rate will be in the future and YOU signed the paper.
On the bank side, the branch managers were heavily pressured to get anyone they could in a home, and quickly. A news story here in St. Louis detailed a prominent home building company that went out of business BEFORE the crash. The owner realized the banks were giving away loans to anyone who could hold a pen and he closed down, fearing a crash was coming. The companies that kept building in our area were stuck with anywhere from a few unsold homes to hundreds. All but two went out of business. Personally, I believe people had to see this coming, they simply chose to look the other way.
“Reuters revealed the plight of people who walked away from their homes not realizing that their names remained on the deed and that they were financially liable for taxes and other bills related to the abandoned property.”
“Not realizing?” Ridiculous.
Maybe ridiculous to them but a lot of people easily believe whatever their bank says.
You think the bank tells them they are not liable for taxes and other bills related to abandoned property?
The plight of stupidity. Honestly, I find it hard to believe that one could truly believe that they could just walk away and all would be ok…
Holding a homeowner responsible for vandalism to a home vacated because the bank has initiated foreclosure is what is ridiculous. Some banks actually lock the homebuyer out of their homes, so that they cannot maintain the premises. If the bank does not intend to follow through on the foreclosure, they should not force the homebuyer out. They need to find a better way to process and handle their loans.
Couldn’t disagree more Huh! Nobody “forced” anybody out. The owners skipped out on their own and failed to live up to their financial obligation. An obligation no one else should have to pay for other than the homeowner.
You disagree that homeowners in foreclosure are forced out of their homes? That is what happens. You can’t disagree with it!
No, that’s not true. The bank can’t “force” anyone out of a home in Florida until the bank holds the title to the property. Just because the bank sends a notice saying they are starting the procedure doesn’t mean anyone if forced out. I think you need to reexamine the details of what is being reported here.
Sorry, I am not able to sympathize completely with the “poor little homeowner” that bit off more than they could chew (willingly), enjoyed a lifestyle in a home that they couldn’t afford and walked away from a responsibility and contract that they entered into.
Forgive me for not thinking that they (the banks) “They need to find a better way to process and handle their loans”
Sigh. These soundbytes are terribly distracting. Not everyone who faced foreclosure in the last economic collapse “bit off more than they could chew”. Actually it was they people who bit off more than they could chew who partially caused the collapse. But the recession hit everyone – the responsible and the irresponsible. Those who had the misfortune of losing their jobs in the latest recession suffered a double-misfortune if they owned their own homes, since their primary wealth repository plummeted in value at the same time as they lost their jobs.
Don’t forget the banks are the ones who made the bad loans in the first place. They should have known better – in fact, they DID know better! But they didn’t care since they were selling off most of the bad loans. They were just as irresponsible as the homeowners who thought they could ride the market up.
‘Not everyone who faced foreclosure in the last economic collapse “bit off more than they could chew”.’
Unfortunately, too many did. The encouragement by government for peopel toput 3% down or less also helped contribute. Greed of people taking out home equity loans so they could buy their wide screen TV’s, luxury cars and in some cases second homes also contributed. And the worst offenders (many in Nevada) people buying hmes they never intended to occupy as prices were just going straight up and they wanted more of what really didn’t belong to them. Makes me sick.
‘Don’t forget the banks are the ones who made the bad loans in the first place.’
At the direction of Barney Frank, Chris Dodd, Fannie Mae and Freddie Mac. More government BS of which I’m sure you’re fully supportive of.
http://www.youtube.com/watch?v=cMnSp4qEXNM&list=FL9lJuRBjktDPY_TeM76IBSw&index=74
“At the direction of Barney Frank, Chris Dodd, Fannie Mae and Freddie Mac”. That doesn’t tell the full story, and is very misleading. It’s nothing but bank / Wall Street propaganda. Here is “The Rest of the Story”.
Granted, they shouldn’t have lowered the standards like they did. However, if the banks had adhered to those standards, these problems would never have happened. The standards were lowered, but the bankers didn’t even follow THOSE standards (they had their orders from senior management). That’s the real problem. Then they packaged these fraudulent loans, which were NOT legal, with legitimate ones and sold them.
This process continued, with millions going into criminals’ pockets each time this garbage changed hands. It was a game of “hot potato”, and they knew it. Now they’re trying to shift the blame, while they quietly move their ill-gotten wealth to the Cayman Islands.
Shirley, don’t bother. Enough years have passed since the bubble burst. If someone doesn’t know the full truth by now, it’s because they don’t want to know it. Let them keep believing it’s all the gummint’s fault (who, by the way, I agree started the snowball and contributed to the escalation). It doesn’t look like anyone is going to prison at this point, anyway.
My husband and I recently bought a “zombie”. It had been vacant for more than 2 years, though marginally maintained by the holding company since the owner was then deceased. Waited over 6 months for it to finally go to a live auction due to red tape.
I do believe banks need to find a better way to handle foreclosures so they don’t become eye sores and nonviable property because of decay. I don’t blame the homeowner, because of the economy and our government situation. I know too many people who have lost their homes due to being laid off, and ending up upside down on loans due to bad revaluation.
They didn’t end up being upside down because of being laid off. The market made them upside down, but that is completely irrelevant. Regardless of what your house could sell for if you put it on the market, you are still obligated to make your loan payments, period.
Darn straight! It’s only OK if corporations do it.
I agree. 4 years ago, I moved from a 50k home to a 110k home (living so extravagantly). The 50k price was in 1990, long before the housing bubble. It took over 3 years to get rid of the old place (while paying on both mortgages); I finally settled for 22k, which was a bit less than I still owed on it. I’m thousands in debt because of it (including remodeling costs to try to make it more attractive), but I’m dealing with it and will be paying for a long time, but I don’t walk away from my responsibilities. I don’t think people should get special priveleges, when so many of us are struggling to do right.
I think the banks AND the homeowner’s shared in this mess. I know people who took ‘stated income’ loans, where they then HAD to take an ARM, and lied through their teeth so they could get in on the home craziness and live in a home they KNEW they couldn’t afford. I don’t feel bad for too many people that lost their homes if they had an ARM loan. The lender tells you what your adjustable rate will be in the future and YOU signed the paper.
On the bank side, the branch managers were heavily pressured to get anyone they could in a home, and quickly. A news story here in St. Louis detailed a prominent home building company that went out of business BEFORE the crash. The owner realized the banks were giving away loans to anyone who could hold a pen and he closed down, fearing a crash was coming. The companies that kept building in our area were stuck with anywhere from a few unsold homes to hundreds. All but two went out of business. Personally, I believe people had to see this coming, they simply chose to look the other way.
I think I saw a show about this, it’s called, “The Walking Homestead”.