Thursday, April 28, 2011

House Hunting, Fighting Foreclosure and Government Grants for the Homeless

Well the banks successfully evicted us after our year long battle.   Using last year's judgement instead of going through the forcible detainer (eviction) again.  Bankruptcy for some will still be a good option for fighting through the legal system. Make sure if you go through bankruptcy that you learn as much as you can FIRST, or have a very trustworthy person guiding you.

For other people doing a  notary complaint process and documenting the fraud for a lawsuit will be a better answer.

Going through this process has taught us a lot.   Find your alternative housing long before you end up evicted.  It is not dishonest to plan ahead, the banks are a business and all is considered as contract law. It is not dishonest to plan to take care of your family while fighting the fraud and  negotiating with the banks to honor THEIR contracts. For instance have they fulfilled the obligation for the qualified written request within 90 days? Have they committed TILA violations, have they broken Fair Debt Collection Act? Were you robo signed?  There are many FRAUD issues.  Make sure to check out or the blogs listed in my blog roll to the right to educate yourself on more issues.  You can also check past blogposts on this blog using search for key terms.


Right now we are seeing a new thing on listings for homes for sale by banks.  In our search for cheap housing we found that HUD is awesome source of free housing - FOR INVESTORS.  The government in it's land grab has taken over most loans from banks via Fannie and FHA etc.  They account for about 63% of real estate listings.  This means that the government is the direct benefactor of  "non performing assets".  Remember these mortgages were sold to investors already (money made) then again were paid for with insurance funding for investors and insurance when house was foreclosed on.   Now the government owns them free and clear and unlike a straightforward real estate advertise, buy and close - they are holding out for highest bidder.   We found this out when looking for a 37,000 piece of property with trailer that was advertised as available.

So essentially the government is grabbing homes with a call to increase the foreclosure process, then they are holding up people from investing outright in a new home by bid competition-AND on the other hand they are spending money to fight the homelessness they are inflicting on people.  Remember in foreclosure you have 5 days to get out, once the bank notifies you. Technically once the auction or trustee sale has happened - you are homeless, until you can have it overturned.   The government is in control of about 63% of those foreclosures, they could stop the train there, instead they are granting millions of dollars to homeless programs, including a new 16.4 million to combat rural homelessness.   Hard to say this but we are now one of the homeless, partially due to the lack of action by government in dealing with the fraud.  AS with any other government process, funding will be hard to access by those who need it. 

But I digress, back to the house hunt. We went and talked with neighbors of the advertised home,  who told us that the home had sold one month ago for several thousand over the asking HUD price. The happy new owners and paid out cash total of something like 63,000, obtained keys and were waiting for the green light to move in or rent it out. We quickly learned that HUD advertises one price, then holds out and extends the listings, waiting for highest and best cash offer.  INVESTORS are snapping up the medium priced properties. Thank you government for not stopping robo signing, fraud and correcting wrong - but for taking advantage and lining the  coffers of the governmental 'spendaholics'.  Does this type of thing sound familiar? Fix and Flip prior to the housing crash?


On Trulia the real estate owned by banks (REO) is being advertised in a very defensive and inaccurate statements.   HERE is a sample wording from one listing:
Bank Repossessed. This property has completed the foreclosure process and is now owned by the foreclosing lender, which took title to the property for an estimated consideration (loan balance plus other fees and costs). Foreclosing lenders are often motivated to sell bank-owned properties (also known as REO, or Real Estate Owned) quickly because they are non-performing assets. Please register for a free trial with RealtyTrac to access complete information for this property, including full address, foreclosure details, lender information, and more. 
If you have been following this blog and others you will know that the foreclosure process is not complete - there is the return of the security instruments according to UCC 3 -501 B.  There are many lawsuits and possible clouded title.  Chain of title could still be compromised.  They have taken title alright - stolen in many cases from owners who have not questioned if all payments were applied to the mortgage or if they were target of toxic loan or robo-signer.   The fact that they are advertising this is troublesome to many in the t foreclosure fight arena.


Now we are back to square one working on our legal processes, while looking for a place to house us for the next six months to one year.   We are also rebuilding our business.   WE are in temporary situation and life is good.  If you hear of a great property with cheap housing for under 50K let us know.. or a home to care-take while the homeowners are fighting their foreclosure. :)  Let us know how your foreclosure fight is going by leaving a comment.

1 comment:

MPofA Crew said...

Very informative. I think you will find some peace of mind, finally, after all you have gone through. It does look peaceful there.