New Trends in Foreclosure
There are 2 interesting trends in the foreclosure crisis. One involves people walking away from properties even though they can pay the mortgage. Their homes are no longer worth what they were and they’ve decided it’s no longer financially wise to continue to pay off their debt. http://rismedia.com/2010-03-30/fed-up-homeowners-who-can-pay-the-mortgage-dont/
The other group of people are hiring attorneys who specialize in delaying foreclosure judgments. Terry Savage, a financial reporter for the Chicago Sun-Times reported yesterday that many buyers have sought to renegotiate their mortgages only to run into an maze of difficulties with their lenders. They are turning to attorneys who know the tricks of the trade in slowing down the process such as demanding to see the original note. Because of the convoluted ways the mortgages have been packaged, it’s often difficult for the lender to produce it. http://m.suntimes.com/suntimes/db_10085/contentdetail.htm;jsessionid=10E297B0365455E3B8572667CA7882FA?contentguid=8Vu8eLDC&detailindex=16&pn=0&ps=20&full=true
Both groups feel morally justified in taking the route they have because of the actions by the lenders in creating this crisis. Some borrowers feel that lenders are still going about their business making money and receiving help from the government to stay in business. People who feel they were duped by predatory lending, feel justified in fighting back.
The result of this type of behavior remains to be seen for those of us involved in preserving neighborhoods.