Instances Of Bank Foreclosure Amidst Financial Bailouts
Article by Anirban Bhattacharya
The Financial Crisis has struck. And this is a stark reality.
No one, a year before, could have imagined that the world’s biggest superpower would see a day of such a financial catastrophe and that too of such a large magnitude. But it has happened. And now there is no looking back.
Reasons have been analyzed, causes have been discussed threadbare but what stands before the world today is a monetary disaster with economies on the verge of a breakdown. But that’s just with economies- intangible and envisaged. What matter is the level and the kind of impact all this has had on the common man- especially in the mortgage and foreclosure department- from where the crisis traces its roots.
Bank foreclosure homes today seem to be much more a reality than a traditional concept. However to a common man, all of these terms appear arduous. Not everybody of course would know what they mean! So, here is a brief description of the essentialities:-
Mortgage – an agreement, under which someone borrows money from a money-lending organization, in this case, a bank, in return for giving that organization the right to take possession of the property given as security, if the loan is not repaid.
Foreclosure – a legal process, by which the money lending organization, takes over the property, held as security. Due to the inability of the mortgagee to pay-back loans. This is exactly where the problem lies. Because, the mortgagees, due to their inability to pay back the borrowed money, have to shed off the houses they had bought from the money- in some cases be literally shunted out of them. The process remains simple- with bank putting the foreclosure homes for sale-in auction.
Number of times the mortgagees in a desperate attempt to save their property try to engage the bank in negotiations or try to delay the foreclosure to buy time for them – unfortunately, to no avail. Instances have been reported when people have just walked away from the houses, vacating them or posted the keys to the bank (such envelopes being referred to a jingle mail!). Even the banks have to face a two-pronged situation. One, they need to let the liquidity flow to tackle the crisis.
Two, they are completely overwhelmed by such requests from the lenders that the applications in some instances are not even read- let alone be considered! Nevertheless, vacating the house is not the only option available. It would always be better to stick on- until you are asked to leave. Even then, try to freeze the legalities for as long as possible. Who knows, the very next day, the government might have come out with a rescue and bailout plan! If ‘Bank foreclosure of home’ is the keyword for the day- ‘Bailout’ is the counterattack. Yes, the economic Titanic is shaky- but it is not sinking. And this too is a reality.
About the Author
Myself webmaster of http://www.lendermustsell.com – A source of lender owned foreclosed homes and properties where you can make your offer on Bank foreclosed home, foreclosed homes, Bank foreclosed houses, bank foreclosed property etc.