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.