Since the housing crash three years ago, Maryland and DC have moved to protect the homeowner. This move only seems fair in light of some of of the shoddy practices employed by some mortgage companies and banks. While foreclosure laws changed to protect the homeowner in Maryland and DC, things have moved the opposite direction in Virginia.
According to the Washington Post:
Last year, the state legislature overwhelmingly passed a law making it easier for lenders to defend themselves when accused of giving homeowners too little warning of impending foreclosures.
The process moves so quickly in Virginia – one of the fastest states in the nation – that homeowners can receive less than two weeks’ notice that their house is about to be sold on the courthouse steps.
That confronts homeowners with an almost impossible deadline. To get a court to stop the sale in that narrow window, they must gather evidence, file a lawsuit and potentially post a bond with the court that could total thousands of dollars. Instead of trying to find a lawyer and prepare a suit, many borrowers run out the clock trying to deal with their lender.
At a time when lenders have been cutting corners and using phony documents to seize huge numbers of houses, the hurdles can be insurmountable, according to lawyers, consumer advocates and borrowers who have tried to save their homes.
“There’s no question that people are losing their homes when they should not be,” said James W. “Jay” Speer, executive director of the Virginia Poverty Law Center, which is part of a legal-aid network.
In many states, homeowners facing foreclosure automatically get a day in court, a chance to tell a judge why they should keep their homes. The judicial process provides at least a modest check on error and abuse.
But in Virginia and 28 other states, as well as the District, according to the RealtyTrac foreclosure information service, borrowers have no such luck. They face “nonjudicial” foreclosure processes, meaning lenders can foreclose without going through the courts.
It looks like our Virginia legislators have some work to do once they hit Richmond in January. They need to be protecting the homeowner against what often has been really bad business practice. It is now time for our delegates to get over worrying about who might be looking at their butt or who might be in the market for some crotchless panties in Old Town Manassas and get on with the business of protecting Virginians. All needed to ignore the whinings and pinings of Corey Stewart and just tell him to STFU, and that they are too busy to worry about his nonsense. Then they need to get busy and protect Virginia homeowners from unscupulous lenders.
Virginians are getting screwed. Time for legislators to protect the citizens rather than giving the banks and mortgage companies, many who aren’t even based in Virginia, the execution’s axe to finish off the homeowners.
Great post MH! I have a friend who has been fighting imminent forclosure. He has spent a ton of money on an attorney. The bank decided, AFTER his lone was bought by Bank of America, that he could not afford his loan and THAT is why they have forclosed on him.
DER….LOAN , not LONE
That is totally absurd. What protections do Virginians have? Why are they being thrown to the wolves?
Why doesn’t Virginia follow suit and throws some protections out there for the homeowner?
The best protection sounds to me – making payments on time.
I am in favor of going after actual fraud in the system. If someone signs a document knowing that it’s false lets prosecure under existing law.
Not everyone is fortunate enough to be able to make every payment on time. Business should not be able to sweep in after 2 weeks and sell your house out from under you. There are consumer protections that should be in place.
Furthermore, foreclosures hurt the economy. For starters, a foreclosure in the neighborhood kicks the value of all the other surrounding houses down, as does a short sale. Foreclosures continue to hurt banks and mortgages companies and other businesses in the long run and they slow the economy.
Sometimes even making timely payments isn’t enough.
http://www.vpr.net/npr/132285516/
For those who are, casually familiar with the Code of Virginia, our state laws have always favored the business owner, over the rights of the citizens. For example, if you are in a retail store, and the owner decides that he doesn’t like your looks, the business owner can call police to have you removed. When the police arrive, they are, under the Code of Virginia, to act as an agent of the business. The police are not there to protect your civil liberties.
The mortgage crisis was caused by bundling of bad mortgages, then selling them at ever greater prices, until the last bank holding these “instruments” took a terrible loss.
The Republicans should have never repealed Glass-Steagall.
As someone who did not buy a McMansion using a balloon or other variable rate mortgage and, instead elected to live within my means, including a contingency for bad times ahead, I have not had to worry about losing my home during the economic depression of 2010.
People who can’t pay should receive the same rights as those businesses who fail to pay debts. Attempts to re-negotiate debt should be mandatory, followed by either Chapter 13 (re-organization) or Chapter 7 (liquidation).
In spite of the propaganda to the contrary, our economy will get much worse in 2011, and it will punish those who have been overextended, the most.
The irony of this current environment is that even frugal citizens who are well positioned to buy a home now, are having difficulty, 1.) Banks are reluctant to lend. 2.) those homes that are abandoned, are being held as inflated assets on the books of teetering banks, who are not willing to sell them at lower, market prices.
I have no feelings one way or the other for those who are using houses as investments. If they can’t pay, well…I have no feelings. Usually the renter gets an abrupt notice so I suppose I have some compassion for thos people.
However, many homeowners have had unforseen things happen. We went through a recession of epic proportion. We are still going through it, despite the classic definition says we aren’t.
Marin, it conserns me that you would ignore all of these facts and simply say pay your mortgage on time. It isn’t that simple. Some of these people are not given an opportunity to negotiate or make good. Some people pay and it is ignored. Horrible things go on.
I am sure people would pay if they could. Yes, there are some dead beats, but most are families just trying to get a long in a tough world.
if you borrow money from someone and don’t pay it back, then the lender has the right to seize the collateral used to secure the loan in the first place. that’s the bottom line, and if you don’t like it, don’t borrow the damn money
In this country, there are rules for seizing one’s collateral. The rules need to be set so people’s collateral isn’t seized improperly.
Funny that anyone would be on the side of banks and mortgage companies who have played so loosy goosy with lending practices. There is a strong argument that they are responsible for much of the economic disaster of fall, 2008. Why would our state defend these predators?
ah, big business is always the evil one. big oil, big fast food, big pharma, the liberals’ hate list is endless, except for… big government! the source of all munificence and righteousness
bottom line, you borrow money from someone, that someone is taking a risk because there is no invariable law of the universe that unequivocally guarantees that the money will be repaid. hence, the concept of interest. hence, the concept that the borrower loses his collateral if he fails to abide by the terms of the loan
@J. Tyler Ballance
For those who are, casually familiar with the Code of Virginia, our state laws have always favored the business owner, over the rights of the citizens. For example, if you are in a retail store, and the owner decides that he doesn’t like your looks, the business owner can call police to have you removed. When the police arrive, they are, under the Code of Virginia, to act as an agent of the business. The police are not there to protect your civil liberties.
It’s not about business owners but rather property owners. For example, if I come over to your home and decide to defacate on your rug should I be able to do so as my civil rights say I should be able to stay OR you as the property owner can tell me to get the heck off your land? Yup, your home, your business, your land, your rules. A business owner can “violate” my civil rights by telling me I can’t have a pistol with me while at Chuck E Cheese – they have a legitimate right to make rules on their property and turn away business as they see fit.
BTW, if you think business owners trump citizens in terms of rights….try being a property owner and renting out a home/apartment and you’ll quickly find that VA is very friendly to renters.
I wasn’t trying to be flippant but the best defense is to pay your debts. It’s not perfect (as in when fraud or legitimate stupid mistakes occur) but I’d rather goto court with receipts saying I’ve always paid on time than to show a repeated pattern of skating on borrowed time.
Let’s flip this around. Would any of us be willing to go without a paycheck for 6 months? You have to keep showing up to work and do the normal 110% but no pay for 6 months. No? Interesting that we have no problem telling companies to go without payment for a long time and still provide the service (the loan).
How about if Virginia tightens things up. Makes things harder for the banks because we want to keep people that can’t do basic math in mcmansions. Ok. Banks recalibrate loan services in Virginia and suddenly all those people that MIGHT’VE been able to get a high interest loan (and have a chance to own) are told no – the risk in Virginia (cost of doing business) is too high.
Actions have consequences. I fail to make my note the Sheriff kicks me out of my house. I lie on my loan – I should goto jail. A banker lies by saying I missed a payment and I show a receipt then he should goto jail. It really isn’t that difficult.
The bank owns my house and until I pay off that note they have a level of control over me. Until I satisfy it they could demand payment with notice and then I must vacate.