What Are Banks Thinking About Foreclosures?
We all know about the thousands of foreclosure cases that are being pushed through the courts at record speed these days in Southwest Florida.
But what is actually happening to all of these homes? What we would like to think is that the homes are being sold either at the foreclosure sales or very shortly thereafter, to deserving homeowners who need an affordable place to live in this down economy. We’d like to think that this whole process, although tough on those that are losing their homes, is still in the overall best interests of our community’s economy in general. It is getting people back on their feet, improving the economy, and ultimately creating more jobs so that our beautiful slice of paradise can recover, right? I’m not so sure about that.
I am not an economist, nor do I purport to even know enough about economics to properly analyze this situation, but what I can tell you is what I see in my practice as a foreclosure, bankruptcy, and general consumer defense attorney here in Southwest Florida. What I often see, and what bothers me the most, is banks that don’t even want anything to do with the properties at all!
The banks and mortgage servicers file and prosecute foreclosure cases, get their judgments, and then oftentimes actually cancel the foreclosure sale days, or even hours, before the sale. Now, where’s the logic in that?? Congratulations, Big Bank, you succeeded in throwing a needy family out on the street, just for a piece of paper that says you won, and now you don’t even want the property.
In my opinion, I think Judges should have the authority to deny a bank’s request to cancel a foreclosure sale. My logic is that by filing a foreclosure action, the bank is telling the court that it wishes to enforce its lien against the property by taking title to it. That is the very essence of a foreclosure lawsuit.
So, it is only fair that once you have told a homeowner and their family that they are going to be kicked out of their home, you actually have to follow through with that threat (unless, of course, you want to actually help them keep the home for the long-term by modifying their loan, but then that begs the question: Why did you file a foreclosure case in the first place?).
The banks can’t just avoid taking responsibility for the maintenance and upkeep of the home until some time in the future when it is convenient for them. Why are the banks still being given all the power?
This blog was written by Holly McFall, Esq. of The Dellutri Law Group, P.A.. Ms. McFall defends homeowner in the foreclosure process and in the Bankruptcy Court.
