Friday, July 24, 2009
Banks Ignoring Foreclosures
Banks walking away from foreclosures. I saw some of this earlier this week. Properties so run down and overloaded with liens that they aren't even worth doing anything with them. What happens to a property if the lienholder doesn't take it back. I guess it eventually goes to the city for back taxes and municipal liens. What does it become then. Worthless I guess. Who would have ever thought that a building could become completely worthless.
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Bank turns down guy's request for 80K dollar loan, so what does he do? He closes out his bank account that has 190,000 dollars in it and makes the bank pay him in 20 dollar bills!!
ReplyDeletehttp://www.stuff.co.nz/national/2667215/190-000-withdrawn-in-20-bills
They're not pursuing foreclosures and they're holding back their inventory.
ReplyDeleteThis can suck for the homeowner or be a godsend. When you get to the point you're going to let go and stop paying your mortgage, save what you can and keep living there. I know people with million dollar homes, er, now 500k homes ;-) that are only paying taxes and utilities for well over a year. No demand letter yet.
The bad news is that if you leave and the mortgage holder doesn't foreclose then you're on the hook for all the bills that accrue. Taxes, trash, sewer, etc, as well as fines from vandalism, high grass, etc...
The moral of the story is that when you reach the end of your financial rope, live for free... You'll have time to move, just make sure and save so you can move when the time comes.