Archive for February 8th, 2012

Foreclosure … Why?

Take a look at this house, below (the one on the right).  A woman named Ora Albright purchased it in May, 2005 for $124,000.   This was her home.  Her homestead, actually (according to the Duval County Property Appraiser). 

I don’t know Ora.  She’s not my client, and I’ve never been to this home (located in Jacksonville, Florida).  So why am I showing you a picture of Ora’s house?  Frankly, it’s because I’m pissed off.  I’m pissed off because this house was sold today at a foreclosure sale to a third party (investor) for $12,100.  $12,100!  Apparently, rather than working something out with Ora, Deutsche Bank preferred to foreclose, and throw her on the street, for a measly $12,100.   (If you don’t know how foreclosure sales work, Deutsche Bank could have bid up to the amount of its judgment, more than $116,000, without taking a cent out of its pocket, but it preferred to sell the house, which has an assessed value of $68,000, for a stinkin’ $12,100.) 

I realize this home isn’t lavish or extravagant.  It’s not a palace.  But it was Ora’s home.  I don’t know her, but I’d have to imagine she’d have found a way to pay more than $12,100 to keep her home (if given the chance).  But there’s the rub – rather than trying to work something out with Dora, Deutsche Bank preferred to foreclose and sell the house to a stranger.  For $12,100.   Subtract out the attorneys’ fees it paid, and the costs of conducting the sale, and what did Deutsche Bank make here?  Ten grand? 

What are we doing here, folks?  Is this what things have come to in our country?  When did it become okay for banks to refuse settlements with homeowners so they could sell houses worth $68,000 for 10-12 grand?  Does anyone care?

There has to be a better way, and for all of you who agree, let’s keep fighting until it happens.

Mark Stopa

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