Americans face post-foreclosure hell as wages garnished, assets seized

Foreclosure - Photo by respres

Many thousands of Americans who lost their homes in the housing bust, but have since begun to rebuild their finances, are suddenly facing a new foreclosure nightmare: debt collectors are chasing them down for the money they still owe by freezing their bank accounts, garnishing their wages and seizing their assets.

By now, banks have usually sold the houses. But the proceeds of those sales were often not enough to cover the amount of the loan, plus penalties, legal bills and fees. The two big government-controlled housing finance companies, Fannie Mae and Freddie Mac, as well as other mortgage players, are increasingly pressing borrowers to pay whatever they still owe on mortgages they defaulted on years ago.

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1 thought on “Americans face post-foreclosure hell as wages garnished, assets seized”

  1. The rule is that when a person defaults the FHA has to get two-thirds of the value of the mortgage. If it is a typical 100,000 dollar home that means they have to get approximately 67 thousand dollars out of the house to break even. The FHA covers the rest.
    Part of the problem is many home owners in default trash the home before they leave.
    So the property isn’t worth 2/3rds of the value of the remaining mortgage.
    So what if there are an enormous number of defaults? The house is suddenly worth less than 2/3rds of the value of the mortgage.
    This can happen overnight. They are still attempting to tax the property at its original worth because the county tax people do not recognize the true market value of the house until after about 3 years have passed. Nice bureaucratic nonsense.
    So the only person left to go after other than the bank is the person with the original loan. That person should be free and clear if they have declared a bankruptcy. Should, Would, Could. All deceptive words. We are dealing with a bunch of well educated legal thieves here. The fact is that they can go after them because of laws put into place that have changed the way bankruptcy works. This was done under the Bush administration when too many people were escaping the process of being fleeced.
    Bankers are in bed with the lawyers and the government. That has been known for years. It is only when a public outcry really burns all of them that anything really changes.
    Not one person that I know of ever went to jail for fraud over systematically falsifying the qualifications of someone for a loan prior to the Mortgage Scandals.
    In Hueston they can tell you all about banksters. They had a huge number of people that had large sums of money in the bank have their homes foreclosed on by the very same banks. The banks were technically bankrupt. The insurance kicked in 6=9 months later. In the meantime the same bankrupt banks sold the properties of the people that had their money in that bank out from under them.
    I am really surprised Texans did not go after them with guns. Maybe that is the reason the government is so afraid of people having weapons at their disposal . . . The fleeced might fight back!
    I approve of class action suits as a way to get them to stop.
    Now all you have to do is find a judge that is not in on the action.
    There is a rebellion going on in this country. It is difficult to get any real estate taxes passed by the public. The reason is no one trusts the people collecting the taxes to be fair. They are not.
    If they wanted to solve the the problem, they should have figured out a way to get the home owner out of the painted corner. That means that instead of foreclosing on the person they needed to come up with a way for them to keep the house while they either sell it or they can refinance it at better terms. One way is to add the payments onto the end of the mortgage. This buys time to make things right. The foreclosure process leaves everyone in the debt cycle.
    The entire scam of homeownership needs re-examined. In the 40s, people had five year mortgages and paid off the mortgages and had parties. Right now on a common mortgage the home owner pays 120 thousand for every 40,000 dollars of mortgage debt. That seems a little high to me. The loans start out at 95 percent interest and 5 percent into principle plus taxes and insurance on top of that.
    So we are dealing with crooks. They do not even use their own money to provide for the mortgage. The government matches them dollar for dollar that they have in the bank in the way of assets. It takes 30-40 years to pay off a home.
    The parasites are doing very well for themselves all over the country and are in league with and in bed with the government itself. Nothing much changes . . . They are still crooks living off everyone else.

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