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January 10, 2013
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Zombie Foreclosures rise from the grave!

:iconebolabears:
EbolaBears Featured By Owner Jan 10, 2013

Zombie foreclosures.

This bizarre term refers to a bizarre, little-known but very real horror of the U.S. housing bust that is crippling homeowners coast to coast, six years in.

Thousands are finding themselves legally liable for houses they didn't know they still owned after banks decided it wasn't worth their while to complete foreclosures.

With impunity, banks walk away from foreclosures much the way some homeowners walked away from their mortgages when the housing market first crashed.

Unsuspecting homeowners nationwide have had their wages garnished, their credit destroyed and their tax refunds seized - all due to zombie titles.

They've opened their mail to find bills for back taxes, graffiti-scrubbing services, demolition crews, trash removal, gutter repair, exterior cleaning and lawn clipping.

At their front doors they've encountered bailiffs brandishing summonses.

In some cities, people with zombie titles can be sentenced to probation - with the threat of jail if they don't bring their houses into compliance.


The mess never ever ends.

If enough of this stuff happens do you think the minuscule 'recovery' is going to be threatened?

Will there be a bail out or something?

Links:
[link]
[link]

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Devious Comments

:iconabcat:
AbCat Featured By Owner Jan 11, 2013   Writer
A bank should not be able to opt out of a foreclosure without giving notice to the homeowner. If it fails to do this it should be liable for any upkeep that is demanded by the local government.
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:iconebolabears:
EbolaBears Featured By Owner Jan 13, 2013
That doesn't appear to be happening.
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:iconmaddmatt:
maddmatt Featured By Owner Jan 11, 2013
They give notice to the homeowner. The only instance where I could even see this possible is through the various HUD and voluntary moratoriums on foreclosures. But those were all temporary and homeowners still had the option to voluntarily hand over the home in a pre-foreclosure sale.

[link]

Again, banks are backed by investors. Banks want a clear title with no liens in order to ensure payment from the investor. I can't imagine the scenario where a bank is willing to take a total loss with no reimbursement from the investor. I can imagine that during a moratorium, the homeowner by design still owns the home and is responsible for it. If homeowners abandoned their responsibility and did not take measures to hand over the home, I could see more fines or penalties being incurred. But even still, as soon as the moratorium is lifted, the bank will do everything to get clear title to get their money back.

This is not an issue for the banks, but for institutions like HUD, Fannie, Freddie, Ginnie.
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:icondumbhoar1-plz:
dumbhoar1-plz Featured By Owner Jan 10, 2013
you're a lil' touched in the head aren't you?
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:iconebolabears:
EbolaBears Featured By Owner Jan 13, 2013
How so?
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:iconenuocale:
EnuoCale Featured By Owner Jan 11, 2013  Hobbyist Writer
I'm a little touched in my pants. By myself.

Fuck. I wanted to make that joke in general, but now you'll think it's about your avatar. Nevermind, then.
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:iconebolabears:
EbolaBears Featured By Owner Jan 13, 2013
ha!
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:icondumbhoar1-plz:
dumbhoar1-plz Featured By Owner Jan 11, 2013
we'll some body has to be the one to touch you right?? I'm sure you'll find a nice fella one day.
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:iconmaddmatt:
maddmatt Featured By Owner Jan 10, 2013
You know what would have been great in any of these articles?

Specifics.

One mentions "thousands" out of 10 million. But neither mention any banks or mortgage companies, any explanation of any status, or any statement from any financial institution that might be responsible for any wrong doing. Just because someone claims you owe something, does not mean it is legally true. Wouldn't be the first time alarmist and shaky journalism has tried to spread fear.

See, mortgages don't just float in space. They are all backed in some regard. FHA, VA, or Conventional. Backing risky loans was the problem with the housing bubble. Yes people are responsible for their own debt, but when they default, there is another shoe that falls when those backing the loan still insure the borrowed amount. Title ownership is a secondary matter. Clear title and ownership can happen regardless of foreclosure.

Also, there was a foreclosure moratorium. Where banks could not foreclose. If someone abandoned a property or a foreclosure process had started, but the bank was forced to halt it, it is not the responsibility of the banks for this delayed (maybe indefinitely) proceeding. It is the fault of the government policy that forced this.

And most of the time, if the homeowners had taken responsible measure to attempt to Short Sale or Dee in Lieu, they would have been better off. There still may be rare occasions where this could happen and while the borrower can be pursued, ultimately falls on the lender and the insurer of the loan.
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:iconmaddmatt:
maddmatt Featured By Owner Jan 10, 2013
*Deed
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:iconebolabears:
EbolaBears Featured By Owner Jan 10, 2013
Specifics, as mentioned in one of the links, is not possible since the zombie foreclosures are not officially tracked.
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:iconmaddmatt:
maddmatt Featured By Owner Jan 10, 2013
Specifics are possible. They tracked down someone claiming it happened to them. Follow that up.

If there is no way to know, then how can they report it happening? And in the "thousands"? I swear journalism has become a place where internet forum dwellers go to write their own story regardless of facts.

Of course you don't care. You just mindlessly copy and paste whatever makes you feel better about your own positions regardless if it has any merit or not. But when you start doing this as part of publications, it sways people like you en masse to hate people and institutions for very shaky reasons.
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:iconebolabears:
EbolaBears Featured By Owner Jan 13, 2013
"Of course you don't care. You just mindlessly copy and paste whatever makes you feel better about your own positions regardless if it has any merit or not."

What mindless position did I take?:icongo-on-plz:
Because if I recall, I had questions at the end of the quotes.

You say I copy pasta but I say I provide actual content.

When did I hate an institution when I asked "If enough of this stuff happens do you think the minuscule 'recovery' is going to be threatened?

Will there be a bail out or something?"

You stink :icongrin--plz:
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:iconmaddmatt:
maddmatt Featured By Owner Jan 13, 2013
What content did you provide?

A junior high blogger whining about banks?
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:iconthegman0:
theGman0 Featured By Owner Jan 13, 2013  Hobbyist
Why u no gives him troll?
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:iconbullet-magnet:
Bullet-Magnet Featured By Owner Jan 10, 2013
If the bank told me they were taking my house, kicked me out, then I was served me bills for that house, no force on Earth would prize that money from my hands.

At this point I think it would be best to simply liquidate all banks and found new ones, making it illegal for anyone who has worked in banking in the past from doing so again. We can't let the same people continue to screw us over like this. They have so much power and have proven categorically that on no accounts should they be allowed to have it any more.
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:iconebolabears:
EbolaBears Featured By Owner Jan 13, 2013
But then all the people at wal mart would move up into the banking sector with your lock out of former professionals....
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:iconbullet-magnet:
Bullet-Magnet Featured By Owner Jan 14, 2013
Do you think they will do worse?
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:iconcenaris:
Cenaris Featured By Owner Jan 11, 2013  Hobbyist General Artist
So rally up a group big enough to do it. They won't listen to words so you'd have to make them fear for their lives.
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:iconbullet-magnet:
Bullet-Magnet Featured By Owner Jan 11, 2013
We did that already, in London. It wasn't good.
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:iconcenaris:
Cenaris Featured By Owner Jan 11, 2013  Hobbyist General Artist
But that was an unfocussed mishmash of fucktards with no clear idea of what they were really rioting about. Some claimed it was because the police shot Mark Duggan. Some wanted to stick it to the police for whatever reason. Some were just looking for an excuse to smash shop windows and steal trainers and ipads innit.
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:iconmaddmatt:
maddmatt Featured By Owner Jan 10, 2013
That would suck for the millions of people the work for banks and have nothing to do with strategic direction.

Also, as with anything, we need not knee-jerk something just because someone cries about the big bad banks. There is more to this story than what is being reported.
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:iconbullet-magnet:
Bullet-Magnet Featured By Owner Jan 10, 2013
Hmm I meant to clarify. Management, decision making, investment. Clerks and so forth just keep the thing moving.
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:iconmaddmatt:
maddmatt Featured By Owner Jan 10, 2013
Even at that, you can't really fault an entire industry for what might be the fault of government policy, individual borrower responsibility, or a few rotten apples.

Or you can illogically stereotype all you want.
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:iconbullet-magnet:
Bullet-Magnet Featured By Owner Jan 10, 2013
It was a moment of anger and frustration, but come on, there are people up those chains who continue to make the same devastating mistakes over and over again that affect everyone, and they never lose their homes or their jobs.
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:iconmaddmatt:
maddmatt Featured By Owner Jan 10, 2013
Many of them lose their jobs.
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:iconzer05um:
Zer05um Featured By Owner Jan 13, 2013  Professional General Artist
Alas, too few. Most seem to get bonuses and move to comparable jobs.
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:iconmaddmatt:
maddmatt Featured By Owner Jan 13, 2013
Not really. Just sensationalized by the media and the left.
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