But What Happens to Foreclosed Homes?
There is brand new data out of the state courts which reflect the results of the Foreclosure Purge of 2014.
The “Foreclosure Backlog” has been slashed nearly in half from 377,707 cases in 2014 to 185,823 cases in 2014.
But what does this mean? Have we “solved” the foreclosure problem? Not hardly. In fact, by and large what I think the data reflects is a reckless disregard both for the legal process and a failure to consider the longer term implications of a judicial policy of…
CLEAR THE FORECLOSURE BACKLOG!
(who cares about the backlash)
Just chopping through the backlog without considering what happens on the back end is just the same as in the criminal context, dishing out sentences and “clearing cases” without taking the time to think about the different impacts that variety of sentences handed out brings. In the criminal context, before society embarks on dramatic new sentencing protocols we stop and think….
“Should we divert this minor with small offenses or should we just throw him in jail for decades?”
(Or at least we should…because that data determines whether we’re “solving” the societal problem caused by that criminal.)
In the foreclosure context, policy makers operating in closed door session adopted policies of CLEAR THE FORECLOSURE BACKLOG….but there is little evidence that anyone stopped to think about what it means to dump foreclosed properties into a softening market….and why in the world should we care one moment to think about the societal and personal impact of throwing a retiree or disabled person or family with kids out into the street leaving behind an abandoned zombie home that the bank will not take possession of? Indeed….why should we think about such things?
(Wait..I’ve got a question…what about the costs that are being passed on to municipalities to care for these zombie homes….nah, who cares about that?)
One last thought before we get to the data…
HOW MUCH DOES EACH FORECLOSURE (of a home abandoned by the bank) COST TAXPAYERS?
(and how could that money be better spent?)
Here’s a hint….and it’s frankly what we’re all starting to see a lot more of….
KEEP FAMILIES IN THEIR HOMES, MAKING MODIFIED PAYMENTS, PAYING FOR TAXES AND INSURANCE STABILIZING COMMUNITIES!
It is undisputed now that since 2009, trillions of taxpayer dollars have been shoveled into The Banks. That’s my money. Your money. Our Money. Blown straight into banks…(remember “foaming the runway” as Timmy called it). That money was supposed to be used to stabilize…but hardly any of it actually made it into communities…it’s just been hoarded by The Banks…more wealth concentrated…wealth that has been aggregated from millions of taxpayers. Just imagine for a moment…..
What if, instead of giving trillion dollar principal reductions to banks…we had instead offered small principal reductions to taxpayers….citizens..people?
Well, for starters, we wouldn’t have nearly as many zombie homes. We would have people actually caring for homes and investing in deferred maintenance rather than making the economically rational decision that smart consumers in this environment make every day,
“Why should I spend one dollar to fix up this falling apart home when the bank is going to kick me out?
Unfortunately, not nearly enough people care one bit about things like this….and that is what is really wrong in this country.
And now for a fun little math project:
Divide Foreclosure Court Funding in a circuit by the total number of foreclosure auctions that have occurred. Even more dynamic, divide Foreclosure Court Funding by the number of auctions that revert to third party purchasers……
That will give a real sense of the futility and economic irrationality of The Purge….
As we drive around neighborhoods that are turned into wastelands