Foreclosure Defense Florida

Bailed Out Banks Buy Tax Liens- Kicking Sand at The American Taxpayer

bank-bailout-liensThe American taxpayer threw billions of dollars at the banks and our “leaders”‘ failed to place any restrictions or conditions on that money that was handed out to the banks.   And what are the banks doing with all our free money?   Whatever they damn well please.   Mostly they’re just sort of rolling around in all the cash, wallowing in multi million dollar piles of it, rubbing it all over themselves.   What they are not doing is lending to the American people or helping American businesses to grow.   And yes, the are channeling some of that money back to their elected friends that handed out all the free money in the form of campaign contributions.

Does throwing fistfuls of dollars back at opportunistic elected officials have an impact on business?   Is a person or business treated differently by the supervisory power after the target has puffed up the stuffed shirts with hoards of cash?   I’ll just save all the snarkyness and point you in the direction of the Economic Times. And I couldn’t request this clip which shows just how nasty the stuffed shirts get someone starts asking questions they don’t like. Patrick McHenry Rips Elizabeth Warren The important thing that clip shows is just how defensive the thugs in power get when people start asking questions about what’s happened with all our money and what the banks are doing now with our money.

But the whole Warren/McHenry dustup is old news.   And frankly so is this story about banks buying up tax deeds, but we cannot get much information about what they’re doing with the rest of their cash and investigators are treated like those pesky moles in our favorite regulatory game, Whack A Mole.   But just chew on this one for a bit.   Now what I want to know is just how many of the tax deeds going to sale in Florida are being sold back to the banks that caused all this mess, that received billions of dollars from the American people and who are utterly failing to resolve the banking and financial crisis that grips this nation.   Consider this:

Banks that took bailout money were supposed to use part of the taxpayer-provided cash infusion to help customers avoid foreclosure, but instead, many of them are buying up struggling homeowners’ tax debt.

The tax liens earn banks up to 16 percent interest, and if homeowners don’t repay their debt within three years the banks can foreclose on their homes. Since the bailout in 2008, major banks have bought nearly 6,000 tax liens in Pima County that total at least $15.8 million.

 

3 Comments

  • Mike Hansen says:

    Think about it. If they can’t foreclose due to falty paper work,
    the next best thing to do is buy the tax certificate and then foreclose on it as soon as possible. It is the only way to clear the
    title. I’m sure their lawyers have informed them of this option.
    For me it is very disheartening when I help a pro se get a dismissal and I tell him/her to be sure to pay the taxes and they don’t do it. The banks understand the human tendency to procrastinate until it is too late.They will take full advantage of this default.

  • Happy Renter says:

    My bank began foreclosure proceedings in March 2010. I didn’t pay my 2010 taxes, and my tax lien became part of a “portfolio” in June 2011.

    Because my lien appears to be earning 0.00% interest (I’m always checking my payoff balance – did it this morning), I assumed my bank bought it.

    I don’t know what good it will do to begin foreclosure proceeding 3 year from now since they have already started. Seems a bit redundant to me.

    And if the bank had bought my lien to “earn interest” on the debt? Unless the housing market picks up in 3 years (ha!) I don’t see that being profitable. I would gnaw off my right arm before I pay the lien, the value of the house is currently half of my mortgage balance, and unless I win the lottery or marry a rich dude in the next three years, I’ll be able to file for bankruptcy if they decide to seek a deficiency judgement.

    I assumed they bought my lien at 0.00% to keep anyone else from snatching it up and potentially staking a claim on the property. I think they know I won’t pay it off.

  • I’d have to examine with you here. Which is not something I often do! I have the benefit of finding out a post that will make people think. Moreover, thanks for allowing me to comment!

Leave a Reply