Banks Want Your House But Not Your Problems

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.

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I have been a bankruptcy attorney since 1989. Our firm represents consumers filing bankruptcy almost exclusively, although I have represented bankruptcy trustees as well as creditors. For 2017-2018 I am also serving on the American Bankruptcy Institute's Commission on Consumer Bankruptcy. If you live in Eastern Missouri, visit our website, send an e-mail or give us a call (314) 781-3400. Our website: STLBankruptcy.com
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