Zombie Homes in the News

These are properties that sit vacant.  The owner has fallen behind on the mortgage for any number of factors and has moved out.  The mortgage company has yet to foreclose.  It sits there, no one taking care of it for months and often times, years.  I represent a number of people who have left their homes out of fear, frustration and the need to move on with their life, to get a fresh start.  Meanwhile, the home deteriorates; the neighbors and neighborhood suffers.

The effects of the real estate bubble that lead to the Great Recession which began in 2008, is still, so strongly with us today.  From where I sit, there is the proverbial blood on many companies and people’s hands.  People who should have been punished, gone to jail, lost their tidy millions which they made in the mortgage business have kept their fortunes and in fact are back at it today.  They come up with a new name, a new angle, acquire the old, bankrupt assets of a former mortgage company, hire the same old people and bango, are right back in the game.

These people, companies hire public relations firms to talk of “Moral Hazard”.  Their concept of Moral Hazard is don’t help the little guy who is left holding the bag with an interest only loan, an incredibly lousy adjustable, high interest loan.  The big guys say, the little guy has to learn a lesson, if you help him, everyone will want help; meanwhile, Big Guy has taken government bail out money; said NO to every aspect necessary to put this country back on its feet.  And finally, after being taken to court, put through long and expensive litigation, finally, finally agree to do some small act to begin to bandage the situation.

Since August, 2008 until now, July, 2014, six long years, we finally begin to see some form of mortgage modification taking place in some real way.  The statistics the companies have reported these six years, in my opinion, in my observation of what actually has happened, are entirely bogus.  The modification departments were woefully understaffed, under resourced, and given incentives to Just Say No.  Mr. and Mrs. Homeowner, out of work or earning $50/70k a year to raise a family of 5 were over matched and playing a loosing hand from the beginning.

Capitalism is a hard life; it beats the alternative.  We can do a better job.  Free markets are wonderful for people who have lots money and can pay to have their money watched and best interest thought out and  protected.  For the great majority of Americans, when it comes to buying homes, taking a mortgage, buying a car and a car loan, sensible rules of the road need created and be responsive to both the company/seller and the consumer buyer.  We are not there yet with the rules that are in place.

Call if you need help with your mortgage or your financial troubles.