Bank ‘walkaways’ from foreclosed homes are a growing, troubling trend
Renetta Atterberry thought she had lost her East 102nd Street house. So she was shocked to learn in January — five years after her mortgage company filed for foreclosure — that it was still in her name.
Worse, the long-vacant rental home had been vandalized and she faced a raft of housing code violations. Since then, she has been saddled with debts of about $12,000 to pay for demolition and back taxes.
“I thought I had nothing else to do with that home,” said Atterberry. “I was so embarrassed and humiliated by this.”
Her mortgage company didn’t buy the house and never took it to sheriff’s sale to see if somebody else would, leaving Atterberry the legal owner, responsible for upkeep and taxes.
These so-called “bank walkaways” are another troubling development in the foreclosure crisis, particularly in cities like Cleveland with weaker housing markets, say housing advocates and government officials.
Lenders or mortgage companies decide they don’t want homes they have already foreclosed on, sometimes because the value has plummeted or they believe the homes could become costly liabilities if they are socked with housing code violations.
But without that sale, the property can languish abandoned and ripe for vandalism. As liens and liabilities mount — creating a so-called “toxic title” — it becomes even harder to transfer the property. Neighborhoods and local governments are left to deal with the mess.
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The homeowner is not liable for the property, the mortgage, nor the note after foreclosure. The legal term is FUNCTUS OFFICIO. It literally means “their duty is done”. This is the same reason that deficiency judgements are illegal. Foreclosure makes the mortgage functus officio, so a deficiency judgement cannot follow afterward based on a mortgage contract which no longer has authority to bind the parties to the covenants.
If the person was brought to court for these violations, the movant would have to prove that the the former homeowner was not only the owner “of record”, but the equitable owner of the property. We all no by now that county records are not prima fasciae evidence of ownership. To do that, the bank would have to disclaim the property and any interest in it, and transfer the deed back to the homeowner. If that were done, then the former homeowner would have clear title, free and unencumbered by mortgage (since it was foreclosed on). Theoretically, the former homeowner could also file a claim against the bank for “usage” of the property, in addition to “abuse of process” claims.
Right… and it was CONSTITUTIONAL for the fraud loan, fraud documents, illegal fraudclosure, and everything else.
Thank you for the info.
THIS ONLY CONFIRMS THE PRIME BANKS KNEW THEY NEVER HAD ANY LEGAL STANDING & LIED TO THE COURTS! It look like those servicer Banks has brought Fraud on ALL the HOMEOWNERS ORIGINAL Dead Deed of Trust accounts. Your DOT number was tied to your check stub of your Tax return & social security number.
IT PROVES THAT THOSE MORTGAGES was SECURITIZED by the SUBPRIME BANKS from the BUBBLE ERA and WERE sold to Wall Street. So there was No way that those BANKS could get a VALID CHAIN of ASSIGNMENT. BANKS still managed to bring FRAUD on the COURTS & THE JUDGES TURNED A BLIND EYE TO JUSTICE..
THESE BANKS created another bogus account number to tie YOUR ACCOUNT into YOUR DEAD SUBPRIME BANK Deed of Trust & pretended to be YOUR servicer WITHOUT NO VALID CHAIN OF ASSIGNMENTS.
There’s NO way that ANY BANK could get YOUR mortgage assigned to them because the SUBPRIME LENDER LOST THE RIGHT AFTER THEY SOLD YOUR PROMISE NOTE TO WALL STREET. THEN WALL STREET CONVERTED IT INTO A STOCK CERTIFICATE, WHICH VOIDS OUT YOUR DOT & MAKES IT UNENFORCEABLE.
Look at your Prime Bank past home income tax receipt & see if the number that they sent you matches your ORIGINAL SUBPRIME DOT. MOST LIKELY IT WILL NOT… This is another FRAUD of what the PRIME banks are doing starting bogus accounts and linking it to YOUR out of business Subprime Lenders’ Dead of Trust. IT’S JUST CONFIRMATION THAT THEY WAS NOT ASSIGNED BY YOUR SUBPRIME LENDER THAT NO LONGER EXIST. ONCE YOU CREATED THAT CONTRACT WITH YOUR SUBPRIME BANK NO 3rd PARTY CAN’T 4CLOSE
A PRIME BANK have to have a valid chain of assignment of the debt, & only the original lender has the right to 4close. The 3rd party banks have NO right to 4close because it’s impossible b/c the lender sold the mortgage to Wall Street years ago.This is a BREECH OF CONTRACT on the DEAD DOT and FRAUD upon the DEAD DEED of TRUST by ALL THE PRIME BANKS. THE PRIME BANKS DEFRAUDED MILLIONS OF HOMEOWNERS FROM THEIR HOMES. A STORM IS COMING by ALL the people b/c of NO JUSTICE
THIS ONLY CONFIRMS THE PRIME BANKS NEVER HAD ANY LEGAL STANDING & LIED TO THE COURTS!!!! It look like those servicer Banks has brought Fraud on the ALL the HOMEOWNERS ORIGINAL Dead Deed of Trust accounts. Your DOT number was tied to your check stub of your Tax return & my social security number.
IT ALSO PROVES THAT THOSE MORTGAGES was SECURITIZED by the SUBPRIME BANKS back in the BUBBLE ERA and WERE sold to Wall Street. So there was No way that those BANKS could get a VALID CHAIN of ASSIGNMENT. SO they still managed to bring FRAUD on the COURTS & THEY TURNED A BLIND EYE TO JUSTICE..
THESE BANKS created another bogus account number to tie YOUR ACCOUNT into YOUR DEAD SUBPRIME BANK Deed of Trust & pretended to be YOUR servicer WITHOUT NO VALID CHAIN OF ASSIGNMENTS.
REMEMBER there’s NO way that ANY BANK could get YOUR mortgage assigned to them either because YOUR SUBPRIME LENDER LOST THE RIGHT AFTER THE SOLD YOUR PROMISE NOTE TO WALL STREET. THEN WALL STREET CONVERTED IT INTO A STOCK CERTIFICATE, WHICH VOIDS OUT YOUR DOT & MAKES IT UNENFORCEABLE.
Look at your past home income tax receipt, and see if the number that they sent you matches your ORIGINAL SUBPRIME DOT. MOST LIKELY IT WILL NOT… This is another FRAUD of what the PRIME banks are doing starting bogus accounts and linking it to YOUR out of business Subprime Lenders’ Dead of Trust. IT’S JUST CONFIRMATION THAT THEY WAS NOT ASSIGNED BY YOUR SUBPRIME LENDER THAT NO LONGER EXIST. ONCE YOU CREATED THAT CONTRACT WITH YOUR SUBPRIME BANK NO 3rd PARTY CAN’T 4CLOSE
A PRIME BANK have to have a valid chain of assignment of the debt, & only the original lender has the right to 4close. The third party banks have NO right to 4close because it’s impossible for the lender b/c they sold the mortgage to Wall Street.This is a BREECH OF CONTRACT on the DEAD DOT and FRAUD upon the DEAD DEED of TRUST by ALL THE PRIME BANKS. SO THE PRIME BANKS DEFRAUDED MILLIONS OF HOMEOWNERS FROM THEIR HOMES. A STORM IS COMING by ALL the people.
This is a nightmare the banks have created and no one is holding them responsible for the chaos. I know of several instances of this happening. Owner either surrenders property or foreclosure takes place but left in name of homeowner, who is responsible for yard work, vandalism, etc. One left the house vacant for 2 years even while bank doing “inspections” and “winterizing” so some ‘property manager’ could collect their little fees or BPOs for driving by the house once a month but the bank does not assume ownership. One owner, having the upkeep anyway, went back and posted and seized the property since he was paying for upkeep and taking care of it anyway. He rented it for a year. Then the bank comes back and wants to foreclose after he has tenants there and advertises a sale all in 30 days, sending letters to tenants, etc.forcing them to leave. The bank has done this more than once and then postponed sale but forcing tenants out.
This is vicious, predatory and mean to make people pay for these houses that the banks refuse to modify loans on and then force owners to pay for upkeep but do nothing. This kind of thing is being done because those entities forcing the issue are making money from it. The property managers, foreclosure attorney mills, agents, etc. all have a hand in the till for a dollar while bank and investor have no interest in modifying or taking it back.
This situation is set to worsen. Everyone wants to look the other way, bulldoze houses or hold owners accountable but. . . ..
WHO IS HOLDING BANKS ACCOUNTABLE?
YOU ARE RIGHT,
NO ONE!
The Banks and Wall Street must be held accountable for not doing their “Fudiciary Duty”, in all phases of the mortgage (fake) contracts. Open the books and audit them all in addition to the Federal Reserve, especially in light of the LIEbor bid rigging among other bid rgging scams witch has decimated many municipalities.