Thursday, September 6, 2012

Attention Foreclosure Victims


Annette Bergman

Real Estate Broker


I didn't want to get into political article writing, but I feel like I owe it to my previous profession to let the victims of the foreclosures know how the foreclosures works.

I feel like, and I will explain why in this article, that the victims need to band together and sue the government and participating banks, and I believe the citizens will be behind you 100 percent.

Now I will explain why.  When a government insurance property goes into foreclosures the government has guaranteed the bank or lender 80 percent of the original SALES price.  For simplicity sake I will use simple figures.  Say you paid $100,000. for your property and put 10 percent down, leaving you a balance of 90,000. at a rate of  8 percent for 25 years.  Your payments were $694.75.  Not including taxes and insurance.  You made payments for 5 years and had your mortgage down, to whatever the balance is.

You lost your job so you moved out and let the bank take the house back. The government paid your banker 80,000. dollars and then the bank sold the house for 60,000. They have received 140,000 for the house, plus five years of interest.  Now you have a judgment against you for the difference between the latest sales price and the mortgage balance at the time of the foreclosure they have a judgment against you for the balance.

The money the government paid the bank was from us the tax payers.  I believe the 80,000 should have gone towards your balance and the bank should drop your rate and extend your term until such time as you have found a job or your income had increased.

My information came from a lady who worked at a title company and told me this is exactly how the foreclosures work.

          Why should the government give the money to the bank to make even more money and put your family on the street?

Anyone have a commit on this?



1 comment:

  1. Thanks for your clear, concise explanation of how foreclosures work. I'm sure this will be helpful to many people.