Cities and Counties Bracing for Flood of Zombie Foreclosures

With 40 million people out of work so far, consumer spending dropping like a stone and the prospect of recovery still over the next hill, the cessation of relief for workers and consumers at the end of July means that by September there will be fake notices of default sent to thousands, perhaps tens of thousands or even hundreds of thousands of homeowners.

Following the past track record most homeowners will fail to contest the foreclosures erroneously believing the debt still exists in the same form and amount as when it was created (less payments made).

In districts where home values are low the investment banks, through their sham conduits will initiate forfeitures through foreclosure actions — and then abandon the property. The reasons are many but chief among them is that they don’t actually care about the money. they care about getting the foreclosure to insulate themselves from false claims of securitization of debt. The sale of the debt, you see, never happened.

That leaves the cities and counties without any legal person willing to pay taxes and fees. So far, the cities and counties have missed their opportunities. But when these zombie foreclosures hit the marketplace in January and February of 2021, they will again have an opportunity to recoup their money by suing the investment banks.

But they probably won’t because the politicians are often supported by political donations and other support from Wall Street banks. That in turn leaves the taxpayers — Federal State and Local to pick up the tab for services that are no longer being funded by assessments on those properties.

 

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Discovery

2 Responses

  1. Most people don’t know they are screwed by Investment banks. Others are scared to go after the system

    We can only prey for America to survive.

  2. Sad but true Neil. I sitll don’t understand why everyone has not chosen to go strictly after and fully expose these long standing paper mills and the crooked attorneys and politicians involved. Semper Fi.

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