system does in the six there've been about ten million foreclosures zambelli
one everybody knows the pain of those foreclosures and that's a huge problem
in the country now there's a was a second problem with those for closures
there was the robo signing scandal on the banks wound up having to pony up
kind of twenty five billion dollars for it because the reality is a lot of that
is gonna come from the u_s_ taxpayers
uh... but it was there was a settlement there and of course they will be charged
many of the crimes even though it was criminal
so that was another huge prom and in the robo signing
scandal if they want for clothes on houses they didn't even own as it were
checking the bob documents they were just having robo signatures on there
we foreclose we foreclose we're foreclosed what they show for a closer
not but it was even
their mortgage or not they were proposed
and so we know about that tremendous in just a swamp
what's interesting is the third kind of injustice because of these foreclosures
this two million houses that are still
in foreclosure process but have not been foreclosed upon
why is that
well it turns out this is thing called a zombie title problem
where the banks tell you that they're going to foreclose on your house
and then they don't
now why did they do that and what kind of trouble is that cause for
no big deal yellowed
of the troubles
number one
when they go to
say that you should go i have to leave the house and they do nl the people
leave the house
they don't realize
they still have
the title therefore
in their name in a bit
bank changes their mind and decide not to foreclose on your house for reasons
i'll explain the second
well that he sought to be paying taxes
if they're at make sure that your lawn here housing good shape
a wise
the county starts
giving fees and penalties and fines etcetera
and by the way the bank
keeps charging you
saying hey you know what you sold without mortgage you don't even realize
you all the house
because they never told you
it got sold that bid in three different states recently
says nobody knew that the so all of the house was the banker head trip it was
not be title track
the houses blew up
they they can all come i wrote yes you know why
cousin ever turn off the gas
and so this is a don't turn off the gas and nobody's in the house began spoke
about those up builds up into three different instances at least
the house of literally explode
i thought i mean you have a well literal zombies right
the house becomes on his innocence
weekly get a sense
of how
horrible this injustices and what they do
demerit points here
so david volker is one of the guys he had had a contractor business in buffalo
new york
and his business ran into trouble during the recession he couldn't do make this
payment so hsbc several for closing on your house
they literally place a padlock on his door and put banks ickes all over the
floor and they said you're done your foreclosed get out of ok they literally
lock them out of his own house
so he was for close to home you enters
daughter's house and was living there uh... living room i believe and then
they come back later no haha
uh... we change our minds
and peter as a solo the house
and uh...
so you now whole all these taxes all these liens
all this extra
mortgages and all extra for penalties that you have accrued
well book missus port
i was stunned
never for a moment thought isobel on this house
you know why
no separate so it was foreclosed on
now he goes a says popular hsbc
look by have arrange the sale which is a short sale for this house you are going
to get the money
the banks is now
we don't want to do
useful all lives
and when you get over new debt collectors
and was that i have the government-owned u
but we will not accept the set
but then what in the world are you supposed to do
but they were just getting warmed up their way to find out
about the other people that this has afflicted so let's go to marley sheep
he's a fifty five you're older used wrote dr transfer sara lee he did that
for twenty five years
he was that recently sent this the probation
because of the zombie titles you think you know he can pick you know rescue for
the supposedly any sense
it does let me explain
the county said hey listen
are you got a tax lien ma'am
yours you technically on the house they like you that's your problem not my
problem the bank told you or for clothes i like they do in every one of these
cases
sad day for you
the old meet this
lenient update you on the all the facts for this house the legal limit right
and then
the here over a decade collector
copy repair terms of trouble so for in this case they said uh... which on june
four thousand one hundred eighty five dollars for code violations
i'm gonna show you an extraordinary vitals for court costs
and leave in charge of ten thousand dollars at the city's force to tear down
the house
you don't live in and
the bank told you was foreclosed upon
so that's a zombie title for it
so what do you know they arrest them because it was people of the government
money make an arrest
now is actually a private debt collector who's actually collecting the money but
it doesn't matter he can use the power of the government to rescue anyway
so poor marlin
and this makes me sick
yes and what their repair the house he can't win it
there's already people i came in there and that you have also been jungin
thereby homeless people drug addicts that sarap
but he has to go and repair the house
secured the paint the house he had to repair the steps
and this is the indignity for whatever reason we are under my skin
he has to go back
and mow the lawn every week
all before pricing but the bank doesn't have a lot of sell houses use all the
other days
anything like that again is that i can't let me at all
i don't know let's look at it alice
this is sad that it had dates
uh... don't
have to tell you if they decide not to foreclose
and they are under no legal obligation you're under all the lobbyists
now by the way to use all the money in the house for profit
would you then get the proper no the banquet
so they got all the benefits you get
all the costly and wonder why people are frustrated with banks
and our government for not being able help was at all
we continue
college uh... clean the martian college law professor broker mcglynn had a
really great line about this he said
these people have become like indentured servants with all the responsibilities
for the properties
but none of the rights
he's exactly right investor what they've done to assign
mass scale we worked for them
and in this that the indignity that you can even live in the house but you have
to pay the bills otherwise you go to jail is
mind-numbing
so one of the banks do it
well here's interesting part they say
thanks to at least
replenish your ins
the tax and accounting benefits
for documenting the lost if they sit on the house is valueless i can sell this
house so i'd got rid of the guys that are in the house
but it's not worth anything
some of the write it off as a loss
that i get the tax benefits of it enact limit on insurance
if i sold the house i couldn't do that as i get some money back
i couldn't get the insurance
and i wouldn't get as big a tax cut
and on top of that
and the reason that they're taking the people out of the house so they could
play this trick on them
is just to get a little extra money
they then sell unpaid debt the debt collector
and now there's even more unpaid debt cuz you didn't realize your current
penalties in fees because you know your still on the house
senator robert a debt collector is a mistake on them forever mation eight
a huge or get whatever you want on because they already got the money from
the debt clock
this is cruelty beyond imagination
but it gets worse
there's actually no regulations that require the banks the lead homeowners
know that they have changed their mind about a foreclosure
top isabella working on that at all
absolutely not
that here is judge patrick are near buffalo new york is works of the housing
horton hears what he says
the banks do not answerer enquiries
they do not answer phone calls
their still letters
celica
doctors this character the whole situation is sir real he said
think about that not only do they
dear for close air power like your house
they sent you that collectives the possibly get your arrested
and when you ask them the lesser any enquiries and they have a legal right
not to
what do what they really supposed to do
it gets worse
just really can't get any worse well then we go to the case
of uh... joseph heller
he's from columbus ohio and like all the rest of this case hard-working american
ran into some trouble
uh... you during the recession
couldn't afford to make the payments well this is ok and that bank told him
your foreclose on go home
began goes home fit to live with this
activists and they're tiny little rome can
uh... barely move around in their meanwhile the whole house on their empty
and again people break into the house same story
uh...
then he gets a letter from chases debt collector professional recovery services
at this time
where able to offer you a settlement opened as offered twenty five thousand
dollars two hundred fifty eight
that to portray them to an interview doesn't for yourselves on this account
dana
within fifteen days
why their numbers
aspect twenty-five love you know if you don't last
and yet here we go back your new fix their house either get more fines and
set a regatta mobile on
and by the way because it just below them twenty five thousand dollars
he also oppose the county eleven thousand seven fifty nine dollars
and except so basically
he owns
uh... close to thirty seven thousand dollars which he does not have
any estimate in the house
which he also does not have
but technically he owns
so what's the extra twists in this case
tears that
he's gets signifi
uh... liver disease is advances got hepatitis c
and inactive to berkeley lists and he's treatment from this but it's a good
thing 'cause associate administration
uh... kingdom disability that
but they just rejected those benefits
'cause on the records
it shows that he still owns a house
the court says we might be able to hear case in december
telus said
i will very likely be dead by then