27 Apr Banks Want Your House But Not Your Problems
Banks are now moving forward with more foreclosures than at any time in recent memory. But don’t try to tell them they should maintan those properties, that just gets them annoyed.
When a homeowner faces foreclosure, they often will start looking for a new place to live as quickly as possible. And when they find a place they can afford, they usually have to get moving quickly. If the homeowner is no longer able to keep up the old property, the local government will often have to step in to cut the lawn, clean up the pool, and board-up the building to keep it from becoming a haven for crime.
Since the previous homeowner is not likely to be able to pay the bill, local governments across the country have enacted ordinances to place liens on the property to recover their upkeep costs from the resale of the property. On other words, they’re asking the bank to pay them back for keeping up the bank’s collateral.
Needless to say, the banks don’t like this. And, in Florida, they’re trying to do something about it. The lending industry is reportedly pushing for legislation to prevent cash-strapped local governments from slapping liens on these properties.
The banks don’t seem to be rushing out to maintain a lot of these abandoned properties. They don’t have the desire and/or capacity to help the original borrowers save their homes. They’re actively fighting off the legislation to allow homeowners to modify the mortgages so they can stay in the houses. And now they don’t think the upkeep costs should be repaid from their proceeds.
Not only do bankers have no sense of irony, they seem to have no shame.
Latest posts by Wendell Sherk, Missouri Bankruptcy Attorney (see all)
- Payday Loans Are Not “Cash Advances” Under Bankruptcy Law - January 31, 2017
- Bankruptcy Avoids Judgments That “Cloud” Your Rights - February 2, 2016
- Harvey Miller: Brilliant Bankruptcy Lawyer, 1933-2015 - April 29, 2015
- Why Replace Chapter 7 Bankruptcy Trustees Now? - May 21, 2014
- How To Talk To A (Bankruptcy) Lawyer - January 25, 2014