That is, when I assume the worst of people's motives.A couple of weeks ago Jake posted a story on the Cook sheriff's office decision to stop evicting perfectly good tenants out of properties when their deadbeat landlords were foreclosed on.
It struck me as odd that banks would auction it as vacant property instead of selling it as already leased income-producing property, or maybe they could make a little rental income until the market recovers.
But why fuss with all that when they Feds will simply cut them a check?
Now banks in the Salt Lake area are deciding to reject bids from qualified buyers for their foreclosed properties.
...a move Eric Nelson Auctioneering's founder blames on "indecision" among lenders caused by the government's proposed bailout plan.Meanwhile, these properties will sit and deteriorate and further blight neighborhoods already suffering from falling property values.
...
"The stock market's historic drop last week and the bailout plan are some of the main reasons why the lenders rejected the bids," he said. "They're thinking, 'Why sell the properties for 50 cents on the dollar when they may get 75 cents or 80 cents through the bailout?' "
...Father-rapers, every last one of 'em.
1 comment:
Actually, it's not uncommon for companies to make bids that are 50-cents on the dollar or some other fractional sum and then have the bank holding the mortgage decide to take their chances with foreclosure instead as likely to produce more money. This just gives them a government approved method of having two chances to get more money, one from foreclosure, one from the government.
Keep in mind that foreclosure in America has a few seriously questionable elements in it. I could rant for some time, as I used to be a paralegal at a firm that did this sort of work, among other debt-related law. One example that always seemed wrong to me is that if you have a decent house that can be resold, it will sell at foreclosure because the bank is allowed to bid on the house. They buy it at foreclose (if they're not outbid), and then turn it later. The home owner is stuck with still owing the bank the difference between the loan + legal fees and the amount of the winning bid.
About the only balance on this is that the bank's bid is sealed before the Special Master starts the auction, so if someone bids higher than the bank, the bank simply loses.
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