A new foreclosure tactic, whereby lenders or debt collectors holding second mortgages freeze bank accounts or garnish pay checks of already struggling homeowners, is emerging and making it even more difficult for people to hold onto their homes.
Lawyers for troubled Staten Island homeowners say they are beginning to see examples of clients who go to the bank to take out money and find that their accounts have been frozen or wiped out by other banks or debt collectors -- the entities holding second mortgages on houses already in default on the first and primary mortgage. Some are learning the lender or debt collector has already gone to court and secured a judgment to garnish paychecks.
It's a move more in line with the traditional debt collection industry, which typically targets credit card debt, and it's dragging the house and what little cash reserves people often have into the foreclosure battleground. Experts say it's an end-run by second lien holders around the traditional foreclosure process, which involves only the first mortgage holder and provides important legal protections for the homeowner.
"It's a fast and dirty process," Margaret Becker, lead attorney with the Homeowner Defense Project of Staten Island Legal Services in St. George, said of the new trend.
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for if this would happen to me , oh man i would pitty the poor bastard , my SKS purchase would finally pay off ,
ReplyDeleteIf this becomes more widespread I can only imagine that more and more people would be taking their money out of the banks, further propelling the house of cards to fall.
ReplyDelete10:53 is prime example of why Gerald Celente is right about his many times repeat mantra about people losing it when they have nothing to lose.
ReplyDeleteMoney makes men mad. It has become the sole object of affection and worship. Divorce, kidnap, murder, war have all be attributed to it. And after all, it is jsut a value-less piece of paper that has become the fetish of a mentally bankrupt world.
ReplyDeleteOur owner architects have made us into nation that worships things. People actually attribute their worth to their financial statement or the car they drive. I have always found that fascinating because somehow I never fell into that way of thinking.
ReplyDeleteOf course the worst part of our humanity is in full display during the holidays.
Humans will revert to their animal instincts when pushed too far. In 30s USSR when Stalin robbed the rural farmers of their crops and food and starved them out.
ReplyDeleteThey resorted to cannabalism in limited cases. People were diced up and pickled for food. In some cases, even immediate family members were murdered for food.
Now think about people now vs the 30s. Half the USA's populace is taking anti-depression (addictive poison) meds, people have 1/10th the courtesy or morals that people in the 30s had, etc.
ReplyDeleteIt is going to be a wild ride indeed.
The answer to all this is to "Neither a lender nor debtor be". "The debtor becomes a slave to the lender". Isn't this an "old saying"---did you hear this from your grandmother, or mother?
ReplyDeletePossibly you heard it but you can't remember when or where, ---------or did you read it? No matter what you feel about the "old saying", I do not see how anyone could not fit it to today's post, and today's woes. Don't borrow money you can't pay back.
Sucks to be a debtor. Better to live free.
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