Toxic Titles – “Pretender Lenders” Walking Away from Foreclosures

Governor Elizabeth A. Duke

At the Community Stabilization Symposium, NeighborWorks Training Institute, National Harbor, Maryland

December 9, 2009

Keys to Successful Neighborhood Stabilization

“Communities with weak underlying economies are characterized by a long trend of population loss, gradual impoverishment, and strained municipal resources. For cities like Cleveland, Detroit, and Indianapolis the increase in foreclosures over the last few years has exacerbated a pre-existing vacancy problem. The increased rates of foreclosures and the related economic downturn have hastened a cycle of decreasing property values. Declines in state and local property and sales tax revenues result in even more vacant homes and deteriorating neighborhoods.

Many community organizations and homeowners have been frustrated by the difficulties of working with mortgage lenders and servicers, and these problems are even more exaggerated in weaker market cities. In the most devastated neighborhoods, some lenders do not even complete the foreclosure process or record the outcome of foreclosure sales because the cost of foreclosing exceeds the value of the property. Anecdotal evidence suggests that these “toxic titles” have placed significant numbers of properties in a difficult state of legal limbo.


3 Responses to “Toxic Titles – “Pretender Lenders” Walking Away from Foreclosures”
  1. Genevieve says:

    Any advise would be greatly appreciated…we were supposed to sell out house last week and the day before we were to close found out the there is a problem with the title..”Toxic Title” we bought it in foreclosure in 2007 and now we can’t sell it. We also bought out own Tilte insurance which has done nothing for us. It seems like Judge Long made a quick and sloppy decision w/o putting much thought into it. I understand why he made but the wrong people are getting effected by this…It should be the banks paying for their greed and irresponsible actions instead of the Ma. citizens just trying to survive the economy. Please Help!! Anyone now when the second appeal is to take place? This has put us in a horrble place..I have two young girls and stand to now lose my primary residence because I can’t sell my investment property. Thank you for any advise you might have!

  2. Deidre says:

    Abandonment and loss of revenue for each respective town and state for that matter will take it’s true toll for years to come. There are so many people that need a home yet numerous homes remain vacant because of greed, misconduct and lack of oversight and reform. And yet, there is barely anything being done. The enormity of this problem is overwhelming.

  3. Lisa E. says:

    I wonder if the family (perhaps now homeless) might like to move back into the home since the foreclosing entity apparently doesn’t want it?

    Someone please explain to me how this makes sense! I’m missing some vital piece here because I just don’t understand how leaving a home to lie empty and unclaimed, unkempt and abandoned……….well, how we can explain to the children who lived in that home………you know, explain what happened.

Leave a Reply