Zombie foreclosures:

[Dakota (Premo)]

Foreclosures happen for many reasons, right or wrong, it isn’t for me to judge…. But it certainly isn’t right that the banks are allowed to have these properties sit for long periods of time, never transferring the home to themselves so they can keep the owner, who can no longer live there, on the hook for the property taxes owed.

This article is from CNN and quotes a situation that happened in Brandywine, MD.

Zombie foreclosures: Borrowers hit with debts that won't die - Feb. 20, 2013

[jazz lady (Premo)]

Very interesting. Citimortgage is my mortgage company now after the loan was sold off several times.

I found this interesting:

In a $25 billion settlement with the state attorneys general last spring, the nation's five largest mortgage lenders agreed to inform borrowers of any decision to forgo or delay a foreclosure. But victim's attorneys said the banks have not been careful about following that policy.

I'd say that unless they are forced to do so, they won't.

[Dakota (Premo)]

Originally Posted by jazz lady

Very interesting. Citimortgage is my mortgage company now after the loan was sold off several times.

I found this interesting:



I'd say that unless they are forced to do so, they won't.

I have been following the various settlements and since I don't comprehend it all very well, like say Tilted on here does, I have found it confusing. Many states got awarded large settlements and I’m not really even sure what they have done with these settlements or who it benefited.

I really don’t even understand the “too big too fail” concept either. If banks can create money to lead, basically out of thin air without having the collateral to back them, it would seem, as if, we, the consumer, are a bunch of fools. I say this because we buy overpriced stuff because of it and this lines the pockets of those deeply engrossed in our monetary system.

Our economy has been far too wrapped up in house worth and at the moment, housing is not only way down for new buyers, so are refi's which have kept things moving thus far.

[foodcritic]

Originally Posted by Dakota

Foreclosures happen for many reasons, right or wrong, it isn’t for me to judge…. But it certainly isn’t right that the banks are allowed to have these properties sit for long periods of time, never transferring the home to themselves so they can keep the owner, who can no longer live there, on the hook for the property taxes owed.

This article is from CNN and quotes a situation that happened in Brandywine, MD.

Zombie foreclosures: Borrowers hit with debts that won't die - Feb. 20, 2013

I would think that once the eviction takes place it is then bank owned. If i have to pay taxes on it....i am living there.

[Dakota (Premo)]

Originally Posted by foodcritic

I would think that once the eviction takes place it is then bank owned. If i have to pay taxes on it....i am living there.

That is the way it should be but people are getting bills for the in between time it is taking for the banks to take ownership, sometimes years. The banks, IMO, are doing this on purpose because they don't want the associated taxes on their backs. Banks have already done enough to hurt our economy and I do blame them for a large role of why we are where we our today. It isn't the sole reason but a large reason. When banks don't pay these taxes, we, who pay taxes, have to pick up the slack.

[MarieB]

I do know that banks were not putting foreclosure on the market because a rash of foreclosures in the same area would drive their property values down. Many homes are sitting empty because of this.

[mamatutu]

Our house that we have lived in, here in Calvert, for 15 years was a foreclosure. I think about the previous owner that built it from time to time, and the fact that he lost it. I felt guilty that I was benefiting from someone elses misfortune. This back tax thing that these poor people are finding out about, after the fact, is so sad. It adds insult to injury. Foreclosures are just plain sad, all around.

[Dakota (Premo)]

Originally Posted by MarieB

I do know that banks were not putting foreclosure on the market because a rash of foreclosures in the same area would drive their property values down. Many homes are sitting empty because of this.

As much as it does suck for us who already own homes, perhaps that is what should be done? They should hit the market and bring it down to reality.

The bank says a person can afford 28 percent of their pre-taxed money on a mortgage. 28 percent doesn't sound like that much but.... I look at it differently....

If you have 100K salary but after taxes you bring home 70K. The bank says 28 percent pre-tax is what a person can afford for a mortgage. That comes out to having about 42K left over per year after paying taxes and your mortgage. When you average the mortgage payment vs. take home pay, it comes out to be 40 percent. 40 percent to live somewhere is way too much. No wonder our economy is the way it is. If a person has 40 percent going to a mortgage payment after taxes, it is easy, or at least I think it would be, to get in way over your head in debt.

Like I said, I blame our banking system for why our economy is what it is. These greedy states made out and said nothing to try and stop any of it and the consumer is who has suffered in the long run. Now granted, some of those consumers made bad choices but you wouldn't believe how many people think... well... the bank wouldn't have lent me the money if they didn't think I could afford it. (I knew a few like this) when actually the bank doesn't give 2 shiats about you... they just want to make money.

[General Lee]

I agree with what has been said, but what the hell is driving the need for all these sub-divisions with these huge houses? They were going up before the crisis and they are still going up...AND people are buying them.

These neighborhoods are having no problem filling up. IMO, if there was a big problem, these neighborhoods with $3-400,000 homes would not be being built. I haven't seen a basic rambler being built in ages.

[DipStick]

If I was one of those people evicted and I had that property tax bill and, legally, if the place was still mine, I'd be on the phone with some hard hitting lawyers.