Words of Advice:

"If Something Seems To Be Too Good To Be True, It's Best To Shoot It, Just In Case." -- Fiona Glenanne

"Flying the Airplane is More Important than Radioing Your Plight to a Person on the Ground
Who is Incapable of Understanding or Doing Anything About It." -- Unknown

“Never argue with stupid people, they will drag you down to their level
and then beat you with experience.” -- Mark Twain

"Everything is easy if somebody else is the one doing it." -- Me

"Eck!" -- George the Cat

Friday, October 8, 2010

Bank of America Foreclosure Halt: This is Not Good News For Everyone

Bank of America is halting foreclosure sales. They will not carry out foreclosures for the time being.

What that means is if people have walked away from their houses, then they will still be on the hook for property taxes, maintenance, insurance and so on. What Bank of America is also doing is keeping the loans on their books as loans, rather than having to wipe them out. They don't have to manage even more property and they are not stuck with having to dispose of the properties at a sharp loss after nobody bids above the upset price at a foreclosure auction.

So Bank of America isn't acting entirely out of a sense of altruism or shame when they stopped all foreclosures.


Chuck Pergiel said...

Oh, come on. You know it was all because you called them on it. Don't be afraid to claim the credit for this victory over the evil BOA.

lisahgolden said...

I think they're also trying to get out ahead of the PR shitstorm that's coming.


BadTux said...

Note that this only affects judicial foreclosure states. In states like California, we don't have "foreclosure" as such, what we have is "civil foreclosure", which is where titles are deed-in-trust, that is, the title company holds title to the home and can sign it back to the bank for any reason mentioned in the original signing contracts, no judge required, just notice of default with a 30 day waiting period to make good before the title reverts. The only way to stop it is if the homeowner sues the bank and title company for violating the conditions of the trust. In a way this is a superior system to the judicial foreclosure system because the title company always knows who owns the house -- they do, as a joint trust of bank and "homeowner" -- and can't foreclose on a house that they don't own, which is the problem folks are having in places like Florida. On the other hand, because it's not "foreclosure" as such and it's the title company, not them, doing the dirty deed, BofA is free to continue foreclosing here and in most Western states (virtually all of which are deed-in-trust civil foreclosure states) which, incidentally, is where the majority of underwater properties are located, heh.

- Badtux the "Boy, banksters are tricky!" Penguin

BadTux said...

Well, read more and it appears that BofA has stopped doing foreclosures in NON-JUDICIAL foreclosure states too. Whoa. Talk about an admission that you have a major problem!

Around here, about half the low-end properties on the market are BofA short sales. The general joke is that by the time a BofA short sale goes through, you'll probably be ready for retirement. The other half are Wells-Fargo short sales, and while they take longer than normal sales, six months after you put in your offer you generally have the house. BofA is a joke all around and if there was any justice they'd be bankrupt. Oh wait, they WERE, and were bailed out by taxpayer money. Oops, me bad!

- Badtux the Snarky Penguin