If the dollar has little value, then donate a few.

Friday, April 22, 2011

Public notices are pushing foreclosure up.

Lately I have gotten a few e mail about keeping the process of public notice for foreclosures the same. The cries of “This is a move by the big banks to steal people’s houses without the owner even knowing it”.

I thought it is time to tell all the facts on this issue and let the people find out who is really contributing to increased foreclosures.

The “Big evil bank” myth.

Hate to let the bank haters down but banks don’t want any houses. Trust me. I talk to bankers on a weekly basis. They have waaay to many houses now and fear a total collapse of the market. They don’t want to foreclose. They want to keep people in the houses they have and keep them paying something. The banks know most homeowners owe more on the mortgage then the house would be worth on the open market. Banks know they will flat lose money if they take a house and have to try and sell it, especially in this market.

For them to be actually trying to increase foreclosures now in any way shape or form is ludicrous.

Who wins with public notice? Not the homeowner.

Who do people think pays for all that newspaper printing if a homeowner wants stop foreclosure? It’s not the bank. It’s not government. It is not the foreclosure attorney, it’s not the Realtor. It’s the homeowner who is already struggling to make ends meet and pay off the mortgage debt. Banks know this makes it more expensive for people to keep their home but the paper does not print the descriptions for free and will demand payment up front.

If a homeowner does finally get foreclosed on, who do you think still has to pay that amount for the public notice? The same homeowner who just lost their house, and still is stuck paying the difference in what the house sold for and what was owed to the bank.

What’s the cost of this disclosure for a foreclosure? It is a wide range. I have heard prices from $450.00 to the thousands depending on the paper, the description of the property, the number of printings required (3 currently) and the steps the homeowner took to stop the foreclosure previous to potential sale.

The ads themselves are all but useless even if you did see one. Besides the name, I know of virtually no regular person who can easily decipher a public notice add. The legal description of a property is not the street address as you might think. It is 99% surveyor legalese.

Its more like 40 lines of “Measuring 40 feet from the green pin at 30 feet from center line of a point at map marker 126, then turning 36 degrees to the north west corner sweeping away from said pin traveling 26 feet to the northern most point before turning back to the south at a 12 degree angle for 56 feet away from said marker to the blah, blah, blah, blah, blah.”

If you can tell me the legal description of your home off the top of your head I will buy you a coke. It is the lengthy legal description that causes most of the cost for the notice. If ads are to continue they need to be cut down to the person’s name of who is being foreclosed on, the mortgager, a street address of the property and possibly a deed number. 3 to 4 lines max.

The only real winner.

Its not the banks. It's not the homeowners. It's the newspaper that collects the exorbenant fees for the mandated multiple long public notice reports that no one reads.

8 comments:

  1. Senator: Everything you say may well be correct but this results in a very bad PR move. It is percieved as kicking people when they are down and appears mean spirited. When the very same banks were involvent the FDIC and TARP bailed them out it also grants them the ability to foreclose along the ability to write off these losses.No comperable right exisits for consumers.
    Not all foreclosures are from big banks. So if you are interested in saving people who are losing their homes , then we must provide for some other verified form of notification.
    Thanks again for all your fine work.

    ReplyDelete
  2. My father-in-law, a lawyer, said that it doesn't really matter because if you are getting foreclosed on you should know easily because the bank is supposed to send you a registered letter. So this excuse that people are reading about being foreclosed on in the newspaper is false.

    ReplyDelete
  3. Tony, Here is one. http://tinyurl.com/4gw4dfw . They provide E_MAILED ALERTS. They are an INDEPENDENT third party . They have AFFIDAVITS. The cost is ridiculously low. $3K for all of the notices run in an entire year. They provide back up mailed notices for those who want. Sounds better than foreclosed former homeowners having to prop up the newspaper industry.

    ReplyDelete
  4. You are right on about this, Stacy...

    This issue concerns only one group...Newspaper Publishers who don't want to see another cash cow taken from them in a era where advertising revenues and readership are steadily heading to the basement.

    More people have inexpensive access to the Internet than ever read, much less purchase, a local newspaper.

    It's interesting how newspapers take editorial positions these days that benefit themselves or large advertisers. If they were banks, they would have to publicly disclose how much revenue they receive from these ridiculously wordy, incomprehensively long notices that have to be published three times.

    Maybe we need to look at the need for all of these and other legal notices to be published in newspapers at all.

    ReplyDelete
  5. If, as everyone says, the problem is excess newspaper compensation,then why not also amend the bill's impact, of expediting foreclosure process, to assist taxpayers facing the loss of their home instead of simply carrying the bank association lobby's water?

    The bank association is among the top contributors to Legislative campaigns. This looks really bad to voters.

    ReplyDelete
  6. You are supporting bills that favor banks and lenders and bills which make it easier for them to take people's homes.

    This is not a good political position.

    Rethink your position and withdraw your support.

    See: http://www.citizenadvocates.org

    ReplyDelete
  7. House Bill 1920 and Senate Bill will expand government at a time when the people are crying for less government. The impact on small community newspapers across the state if these bills pass is astronomical in terms of loss of jobs, additional unemployment draining the state; plus,the fact that the bills are unconstitutional in that they will interfere with existing contracts for legal notice advertising already existing across the state.

    ReplyDelete
  8. The problem of foreclosure is rampant worldwide. It happens when the borrower can no longer pay his obligations to the lender. His properties will become property of the lender. As his properties are his collateral, it will be hold. If not given immediate action, the lender will enjoy his properties.




    gainesville foreclosure attorney

    ReplyDelete

Here are the rules for comments. Know them. Live them.

http://lastcar.blogspot.com/2011/04/rules-for-comments.html?m=1