Fraudclosuregate | More Banks Walking Away from Homes, Adding to Housing Crisis

More Banks Walking Away from Homes, Adding to Housing Crisis

Research shows 1,896 red flag homes in Chicago appear to have been abandoned during foreclosure process

A new type of property is adding to neighborhood blight: the bank walkaway.

Research to be released Thursday, the first of its kind locally, identifies 1,896 “red flag” homes in Chicago — most of them are in distressed African-American neighborhoods — that appear to have been abandoned by mortgage servicers during the foreclosure process, the Woodstock Institute found.

Abandoned foreclosures are increasing as mortgage investors determine that, at sale, they can’t recoup the costs of foreclosing, securing, maintaining and marketing a home, and they sometimes aren’t completing foreclosure actions. The property, by then usually vacant, becomes another eyesore in limbo along blocks where faded signs still announce block clubs.

“The steward relationship between the servicer and the property is broken, particularly in these hard-hit communities,” said Geoff Smith, senior vice president of Woodstock, a Chicago-based research and advocacy group. “The role of the servicer is to be the person in charge of that property’s disposition. You’re seeing situations where servicers are not living up to that standard.”

City neighborhoods where 80 percent of the population is African-American account for 71.1 percent of red-flag properties, according to Woodstock.

In some cases, lenders might be skirting city rules for property upkeep even after they repossessed properties.

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2 Responses to “Fraudclosuregate | More Banks Walking Away from Homes, Adding to Housing Crisis”
  1. l vent says:

    This article just proves that these Banksters DO NOT OWN these properties and are in fear of going into a court of law before a judge with their BOGUS DOCUMENTS. The Banksters have been on a terror for a long time. It seems as if they are begging for someone to stop them. They seem to be becoming more and more blatant about their crimes of fraud and deception. This begs the question, Why is our Government not doing anything to stop them? We need an INDEFINITE NATIONWIDE MORATORIUM ON FORECLOSURES ASAP. The FBI and many other FEDERAL GOVERNMENT AGENCIES have known about the MORTGAGE ORIGINATION FRAUD AND OTHER PONZI SCHEME FRAUD by the BANKSTERS and WALL STREET WHITE COLLAR CRIMINALS for a long time. They also have VERIFIED they knew and know about these FINANCIAL CRIMES. Why is the Government continuing to allow these Banksters to STEAL PEOPLES HOMES? Where did the people go when they were TRICKED into leaving their homes when they NEVER HAD TO leave? Does this not violate our Constitutional Rights and our PROPERTY RIGHTS? Did they put these people in danger of LIFE AND LIMB? Did these people have any where to go when they left or were kicked out? Chicago is VERY COLD in the winter time. Maybe some of these people were SQUATTING in that abandoned building that BURNED DOWM in Chicago that cost FIREFIGHTERS THEIR LIVES RIGHT BEFORE CHRISTMAS. This treatment and violation of the people’s RIGHTS AND FREEDOMS is a complete OUTRAGE and completely UNAMERICAN. This country is becoming nothing more than a war machine with ghetto scenes all over the place.

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