Foreclosure Freeze

Friday, October 15, 2010

Josh Zinner, co-director of NEDAP, the Neighborhood Economic Development Advocacy Project, and WNYC business and economics editor Charlie Herman reflect on the foreclosure freeze of many large banks nationwide and what that freeze is doing to the New York housing market.


Charlie Herman and Josh Zinner

Comments [3]

Eugenia Renskoff from Brooklyn

At this point, I could lecture on foreclosures and what they mean. It is a devastating experience, one that I wouldn’t wish on anybody. I think it is great that all the attorneys general in our country are finally investigating what really went on. I hope the FBI does too. They should go back a few years and see what happened in the early part of the 2000s. If the banks had not given borrowers loans which were in some cases bad, borrowers would not be struggling. Bankers had the final say. Eugenia Renskoff

Oct. 15 2010 12:54 PM
Merrill Clark from New York

Here is the problem. Many of the banks have sold their mortgages between themselves over and over and over and the transfer documents are not all property. There is a question of who owns the mortgage, based upon the transfer/assignment documents. This same problem existed with the credit card industry of defaulted credit cards being sold over and over and over and the transfer/assignment documents are lacking.

Oct. 15 2010 10:38 AM
Somerset County, NJ

For me this is bad news. The only foreclosures I know of in our area were purchased by foreign slobs who only bought at that inflated price so they could borrow against it, which they did. They are still living in their houses, trashing them, staving off the sheriff for a year now with legal moves. Now they don't even have to pay their lawyers.

I was waiting for one such place to clear out, counting the days I saw posted on the front door by the sheriff.

I was waiting for the foreclosure to consider buying one place myself. This distorts the price too far upward.

Admittedly, I was mainly interested in buying because with the NJ-NY Tunnel constructed this house would truly be a great value. But without the tunnel I frankly probably wouldn't bother investing in this part of NJ (Somerset County) anyway, the prices are based on a false commute time, and the borough's facilities, such as health center, parks, activities, downtown, high school, etc. are too weak to compensate as a primary selling point.

How ridiculous and sad that banks, as major landlords -- aren't pulling strings to fight either for the Tunnel or for community improvements in areas where they own. Like the insurance companies used to encourage people to quit smoking and exercise. Perhaps some of these people not paying their mortgage wouldn't consider it quite so much of an existential exercise.

Oct. 15 2010 08:32 AM

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