Skip to comments.Foreclosure to Home Free, as 5-Year Clock Expires
Posted on 03/30/2015 12:35:33 PM PDT by Lorianne
In September, Susan Rodolfi celebrated an unusual anniversary: five years of missed mortgage payments.
She is like a ghost of the housing markets painful past, one of thousands of Americans who have skipped years of mortgage payments and are still living in their homes.
Now a legal quirk could bring a surreal ending to her foreclosure case and many others around the country: They may get to keep their homes without ever having to pay another dime.
The reason, lawyers for homeowners argue, is that the cases have dragged on too long.
There are tens of thousands of homeowners who have missed more than five years of mortgage payments, many of them clustered in states like Florida, New Jersey and New York, where lenders must get judges to sign off on foreclosures.
However, in a growing number of foreclosure cases filed when home prices collapsed during the financial crisis, lenders may never be able to seize the homes because the state statutes of limitations have been exceeded, according to interviews with housing lawyers and a review of state and federal court decisions.
(Excerpt) Read more at nytimes.com ...
I smell an Executive Order coming in support of the FSA.
So then, these people stopped paying, are legally off the hook, and get to own the houses free and clear??? What the heck???
But isn’t there still a lien on the property if they ever try to sell the house, the lien being the mortgage??? Maybe I’m missing something? Seems to me the mortgage lien is still there even if the mortgage holder missed the five year deadline to foreclose and evict the residents.
Freeloading moochers. They may get by with this, but I hope it financially haunts them for the rest of their lives.
the lenders dont want them homes! otherwise they would have already seized them!
If the homeowner gets the home back... they get all the overdue tax bills with it!
Underwater properties are a loss to the bank.
With all the costs they have to recoup, its just cheaper to write them off.
Dumb question: Who has been paying the taxes?
In Southern California (Orange County aka Orange Curtain), they will foreclose within 60 days.
How much does it cost to feed and care for her 100lb dog?
Geez, dont I feel like a sucker for paying my 3 mortgages on time, every month for the last 15 years.
And of course the NYT cheers this.
And of course, we get to pay for it.
After CW-II, let us all remember that the difference between MSM folks and paper targets will be the fact that the MSMers will move around a bit.
That's a fascinating question, since if someone isn't paying the King's Rent, the King takes his property back...
This is theft on your dollares. Statue of limitations does not run after a forclosure suit is filed. This is tyrany.
Not for long.
As for me I say a a pox on all houses involved very few have even started looking a the numbers of cabals involving the banks, the builders and the appraisers, which also helped fuel this fire. Then there are all those who blame the buyers for failing to following their legal and moral responsibilities and yet have no words of condemnation for the banks and the servicers who fail to follow the real-estate laws and ended up entangling the paperwork into knotted messes which will take years to sort out and what of their legal and fiduciary responsibilities to their investors to follow the law and take care of foreclosure in a reasonable and timely manner? What of the number of State AGs who when faced with the vast number of civil and criminal laws broken by parties involved allowed a buyout of the law? Lots of blame, but little acceptance of responsibility from anyone for their part in things. Seems now days if you are rich enough you can break any number of laws as long as you pay off someone. How far do you think a regular person would get by offing to pay the state some money if they agreed to for go investigation and prosecution?
The ones that really get me is those who say to hell with the law and get the deadbeats no matter what even if you have to ignore the law. People have always been able to take advantage of the law and many times it takes a while to close loop holes and such, but the minute you start calling for laws to be ignored and vengeance parted out we become a lawless nation and no long Republic.
0bama done paid my note, y’all! /sarc
AND...the imputed income. Imagine Guido, the IRS collector, wanting his cut of the $520k “windfall”
Anyone who works for a living, pays their mortgage, supports their own children, obeys the law and doesn't live off handouts from the government is considered to be a sap.
The parasites have won. The government is on their side. Enjoys struggling to get by on a pay check.
Best of all, I bet that you and the rest of us are indirectly subsidizing this loser. The bank has to make money. So that probably means higher fees, maybe a less competitive interest rate or it being covered by the feds.