The Shady Ways People Are Losing Their Homes--Even If They Don't Have Mortgages

[marmar]

AlterNet / By Joshua Holland

The Shady Ways People Are Losing Their Homes--Even If They Don't Have Mortgages
"Wrongful" foreclosures, foreclosures for back taxes or late condo fees -- people are getting thrown out of their homes, and someone else is profiting.

July 14, 2011 |


Millions of American homeowners owe more to their bankers than their properties are worth. With incomes stagnating and unemployment pushing higher, foreclosures are projected to hit a record high this year.

But some are learning the hard way that you don't have to stop paying your mortgage to lose your home. In fact, in some cases you don't need to have a mortgage in the first place – people are losing properties they own free and clear to the foreclosure process.

Some Americans are losing their homes to screw-ups on the part of banks and loan servicers. In March, an exhaustive investigation by the Federal Reserve was, incredibly, unable to come up with a single example of a "wrongful foreclosure." According to the Huffington Post, consumer advocates “criticized the central bank's examiners for narrowly defining what constitutes a 'wrongful foreclosure,'” and warned that “the public would not take the Fed's findings of improper practices seriously.” ..........(more)

The complete piece is at: http://www.alternet.org/economy/151641/the_shady_ways_people_are_losing_their_homes--even_if_they_don%27t_have_mortgages/

[pecwae]

1. Recced.

Some states have a Property Owners Association law that allows the association to foreclose on late dues. Someone who has paid off their mortgage or is barely making the payment faces foreclosure by an entity that can then turn around and pocket any sales proceeds. I despise home owner's associations!

[Chimichurri]

2. Abhorrent.

[GreenPartyVoter]

3. Just friggin' scary!

[MissDeeds]

4. Where the hell are we living?

This can't be the US. What a freaking disgrace.

[grasswire]

5. and renters are losing their homes when property is foreclosed

I lived through a nightmare scenario two years ago. For a year, the property owner had been pocketing the rent from all of her tenants in multiple properties, and not paid the mortgages. All of those tenants (including me and my family) were displaced when the homes were foreclosed and went to auction.

This property owner even advertised and rented out properties during the foreclosure process, without disclosing the status of the home. Took the deposits, and rent and kept on deceiving people, in bad faith.

There are new laws allowing renters to stay a bit longer in foreclosed homes, but there are no laws (except in CA) prohibiting a property owner from pocketing rent.

Renters displaced in this manner usually lose their deposits. Families suffer disruption.