Last week, I was talking on the phone to a realtor friend in Colorado Springs, CO, regarding the housing market there. He reported that as in most areas, things don't look good, and that foreclosures fill the listings of for-sale homes. I asked about whether the "walk away" phenomenon was common there, and he replied that people were stopping payments on their mortgages, but that rather than "walking away," they were staying put in their houses... without paying a dime.
Why should they? Here is what is happening in COS:
After some time of non-payment and multiple threats of foreclosure, the banks finally initiate the foreclosure process, and put the house up for sale. All the while the squatters are permitted to remain in the house at no cost. They don't even pay the property tax because they know that the bank will ultimately be liable for paying the bill.
Then - here's the utterly outrageous part - once the house finally sells, the bank pays a real estate agent a fixed fee to visit the house to see if it has been vacated yet. If not yet vacated, and they almost never are, the bank then pays the agent to go back to the house, knock on the door, and hand the law-breaking squatter a check for a couple thousand dollars to leave within a prescribed amount of time, and to promise not to destroy the property on the way out.
Yup, that's right. Now, not only are these cretins living scot-free while we tax payers ultimately pick up the tab via the TARP boondoggle, but then they get paid, again by us, to finally leave. Word is out on the street that this is how the game is played. If it's happening in Colorado Springs, it's happening in your town as well.
Holy crap! What kind of
society have we created????? ***holes in Congress dream up these schemes along with their "wizards of smart" advisors in order to suck up to a certain voter base, and then when it all fails they blame it on the dolts that were stupid enough to participate. Meanwhile, the same crop of politicians who claim to want to punish the bankers and financial gurus pass more laws to print money at Treasury and funnel it to those same bankers and financial gurus. Trillion$ of new dollar$ are created from thin air and handed out, while each new dollar printed dilutes the value of the dollars in our pockets.
Billions have already gone to prop up foreign banks that we convinced to play along, and now there is news that the U.S. will likely be guaranteeing banks in Afghanistan! Again, Holy crap!!!!
- Kirt Blattenberger
RF Cafe Progenitor & Webmaster