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This is not a legal opinion on any case. It is general information
Dick Durbin told it like it is when he said “the banks own the place.” The place was Congress and all the legislatures across the country. If they didn’t then there would have been a tobacco like suit for the disastrous consequences of the banks lies and damage to entire states, cities and towns. And instead of a few billion dollars, the damages are obviously in the trillions of dollars.
No where is that more obvious when the Bank, in this case Citi, turns down a modification that would enable the real party whose money was used to recover multiples of what they are being given now. The bank gets the foreclosure sale, having turned away from a monetary solution that would enable both sides to preserve some of their capital. Instead the borrowers and the investors (pension funds etc) both get wiped out.
But the injury doesn’t stop there. After the foreclosure the bank walks away from the property and let’s it collapse, be sold for tax liens, or demolished because ti is hazardous or because drug dealers have taken up residence in whole communities that have been abandoned.
So let’s review the bidding here. The bank doesn’t want the money, doesn’t want the property but still says it has a right to foreclosure and causes a foreclosure sale. The conclusion is now obvious to everyone — Citi wants the sale more than it wants the money back from the loan, and Citi has no interest in the property either.
In this way thousands of communities have been severely depressed, financially injured and left without the tax base they relied upon when they attempted to improve and expand infrastructure for houses that would eventually be empty because the owners were forced out, and then abandoned because Citi had no interest in the house — only the foreclosure sale.
Cities, Counties and States have a very similar cause of action as they had with the tobacco companies — and that settlement was over $250 Billion. Just how did the banks think they would get away with stealing trillions of dollars and settling for a fraction of one percent of what they stole? The answer is arrogance that comes from decades of getting away with things they never would have tried when brokerage companies were partnerships and not corporations. Now when executives of mega banks perform illegal ac ts, they are virtually immune — which is why Eric Holder said to sue the individuals on behalf of homeowners, sue them on behalf of government authorities and extract judgments or payments that they have parked off-shore.
The vacant, foreclosed home that once stood at 210 S. Mansfield St. in Ypsilanti Township seemed to defy physics in not collapsing on itself.
For several years, two walls leaned inward while another canted out. Its subflooring and floor joists were gone. Its roof twisted and sagged while its foundation crumbled.
But equally alarming is what building officials investigating the wobbly home in 2014 discovered inside. Multiple memos written by property maintenance companies hired by its owner, CitiMortgage, clearly documented the decay.
The paperwork was hard evidence that Citi knew of the home’s precarious state, but did nothing.
Township building officials say Citi, which foreclosed on a family of three at the address in early 2012, made a deliberate business decision to ignore the property because it’s cheaper than renovating and selling the home. In doing so, Citi tried to stick neighbors and the township with a blighted, abandoned property and its cleanup bill.
Filed under: foreclosure