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Termyn8or -> RE: Florida bankers move to dramatically speed up the foreclosure process (2/26/2010 8:27:50 AM)
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"We don't want the property. We're not into the property management business," Sanchez said of bankers. "We want to get a property out of the courts and sold to a productive Florida family.''"
Complete and utter bullshit. They might not technically be in that business now, but they will be. What they don't see is that there are not going to be many of those elusive "productive" Florida families. In other words, to whom are they supposedly going to sell these properties ?
If they get this off, there might be less strategic abandonments, maybe, just maybe. But what will happen for the large part is that the bank is going to have to sell the property at a loss and then will have the right to go after the original debtor for the loss. This makes the people, not the banks liable for the bursting of the housing bubble. A bubble which the banks caused by the way.
It is almost as if it was planned that way. What's more, given the current financial conditions and the blundering of the "government" a fast track system of foreclosure might exaserbate the coming glut in the housing market. Then they can honestly say they can't sell the properties and will get into the propery managment business, that is until the prices come up a bit and stabilise.
Actually a court overseen foreclosue was a part of the original deal, so look for challenges based on that. What's more it is a clear case of trying to take the court system out of a process for which it exists, and any sane supreme court judge should rule it unconstitutional in about three seconds. But then after a few years of court battles, the debtors remain homeless.
Wait until people start getting desparate. While I am in favor of only taking action with desirable results, certain conditions can push anyone over the edge. In light of that, I wonder how many of those properties are going to end up being a hole in the ground. Imagine a family living in their car watching their ex-house go up in flames. "Gee, I think I left a pair of my favorite socks in there, dammit".
And with their credit ruined, all the other debt they had will go into default. They will keep their bigscreen TVs, expensive diningroom suits and such in storage. None of that now needs to be paid off.
Now if people really couldn't pay through no fault of their own, they could get a chapter seven. But the debt will not occur until the deficit sale. How long might that be ?
It will be interesting to see if they get this one over. If the Florida government lets it happen, let's hope their political suicide goes very slowly and is very agonizing.
T
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