Who is harming the economy – BANKS, not my clients
With all the recent media attention that Stopa Law Firm has received, I’ve gotten a TON of positive feedback from clients and prospective clients in Florida and many other states. Thank you to everyone who has encouraged the fight against the systemic fraud being perpetuated by banks every day.
I’ve also gotten some criticism, too, allegedly because what I’m doing by defending homeowners facing foreclosure is ”harming the economy.” The criticism typically goes something like this: “Your clients are living for free, dragging down the value of my property, and you’re helping them do it.”
Respectfully, people who say things like this are wrong. It’s not a matter of opinion – they’re wrong. And I can prove it.
First off, my clients care about their homes. Whether they’re living in them or renting them out, my clients haven’t abandoned their homes – they’re maintaining them. My clients’ homes aren’t the vacant houses you see with foot-high grass that haven’t been inhabited in a year. My clients are living in their houses (or, in some instances, renting them out), and actively trying to keep their houses via a loan modification. I dare anyone to explain, in any intelligent way, how the economy is harmed when people live in their homes, maintain their homes, and try to enter a loan modification. Who is harmed here? Some CEO at a bank who gets an $800,000 bonus instead of $850,000? Please.
Nothing my clients are doing reduces the value of their neighbors’ houses. You know what affects that value of these homes? Abandoned houses. And why are houses abandoned? Because banks scare people into leaving their homes, making it easy for them to obtain a foreclosure judgment, but then banks don’t schedule a foreclosure sale because they don’t actually want the home. What results is the property sits in limbo – the homeowner stopped paying and abandoned it long ago, but the bank won’t set the foreclosure sale, so nobody else can buy the property, either. The homeowner is not living in it, and the bank doesn’t own it … the property just sits, empty, abandoned, for months, even years.
Don’t believe me? Go check the public records. I’ve been doing that recently in Pinellas County, and it’s scary what I’ve found.
For instance, there was a foreclosure sale scheduled tomorrow, July 13, 2010, in Case No. 08-2426-CI-08. But the sale isn’t going forward because the bank cancelled the sale – for the third time. In fact, the Court entered final judgment in September, 2009, yet the foreclosure sale has still not taken place. It’s not because the homeowner has put up a fight, either – the homeowner never appeared in the case and lost by default – the bank just refuses to proceed with the foreclosure sale. Sound impossible to believe? Don’t take my word for it – here’s a cut-and-paste of the docket, from the clerk’s website:
Lest you think this is an aberration, it’s not. Check for yourselves. Every day, whether it’s in Tampa, Orlando, Jacksonville, Miami, or anywhere in between, banks are obtaining foreclosure judgments throughout Florida, then refusing to set the foreclosure sales. This is what causes houses to remain abandoned and not maintained. This is what drags down property values and harms the economy, not my clients. The banks are causing houses to be abandoned, not my clients. So next time you see a house that’s abandoned, don’t blame me. And certainly don’t blame my clients. Chances are, the bank owns the property – or scared the owner into moving out, got a foreclosure judgment, but doesn’t want to set a foreclosure sale, so the remains abandoned indefinitely.
Am I the only one who thinks this is absurd? How can banks get away with this? Why are judges so quick to enter foreclosure judgments, and throw their neighbors on the streets, when banks are so slow to set foreclosure sales? Why do my clients get cricitized in the media (which refuses to report about banks’ refusals to enter loan modifications), yet banks cause properties to be abandoned all over Florida and get off scot-free? This is yet another illustration of how banks are harming the economy to help themselves. Banks don’t care if the property is abandoned – if they don’t want to pay the insurance or property taxes, they won’t set the foreclosure sale.
Here’s an idea for you, banks: if you don’t want the properties, I’ve got 400(+) clients who will take them, maintain them, and make good use of them. Better yet, if you’re not going to set the foreclosure sale, don’t scare away the homeowner. Let the homeowner continue living in the home, maintaining the home, taking care of the home – just as my clients are doing.
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