Comments on: Philadelphia City Council Suspends Foreclosure Sales, Calls for a Six Month Moratorium

By: In Philly, PA, a New Epicenter for the Battle Over Foreclosures « community defense against poverty

Mon, 28 Apr 2008 13:49:40 +0000

[...] Wire originally reported on the proposed moratorium late last week, with the City Council approving a one month pause in foreclosures while it sought a [...]

By: In Philly, a New Epicenter for the Battle Over Foreclosures : Housing Wire

In Philly, a New Epicenter for the Battle Over Foreclosures : Housing Wire — Thu, 03 Apr 2008 16:01:10 +0000

[...] Wire originally reported on the proposed moratorium late last week, with the City Council approving a one month pause in foreclosures while it sought a [...]

By: Paul Jackson

Paul Jackson — Fri, 28 Mar 2008 21:01:11 +0000

Nick – I’ll enlighten you. Doesn’t work that way.

In this jurisdication, the foreclosure auction is the final step of the foreclosure process. These properties are not “REO” unless the highest bidder at the auction is the bank, in which case the properties become bank-owned.

There is no such thing as bypassing the foreclosure auction and selling immediately — the banks don’t own title to the property. Whomever wins the foreclosure auction takes title. If that is the bank, THEN the bank can sell.

By: Nick

Nick — Fri, 28 Mar 2008 19:43:53 +0000

Someone with more knowledge feel free to enlighten me:

Wouldn’t this action simply preclude the lenders from having a state-sponsored foreclosure auction, but still allow the lenders to take possession of the property and sell it normally as a REO? I mean, auctioning is probably cheaper than trying to sell it normally, but with a large % of auctions not generating any bids anyway (no idea what it is for Philly, but it was ~98% for California), this seems like the end-result anyway. Wouldn’t the banks be better served just bypassing the state auction and selling immediately, or is there some regulation which prevents this (which they will undoubtedly sue over the unfairness of)?

By: juana

juana — Fri, 28 Mar 2008 04:36:47 +0000

as a renter that stayed in the sidelines due to the bubbly prices, this is the last straw. if a homeower’s bailout comes, better to devise ways to stop paying these guys salaries. please, give ideas!!!

By: Jeff's Moped

Jeff's Moped — Fri, 28 Mar 2008 02:37:04 +0000

City leaders all across America are using the “foreclosure crisis” to make one point perfectly clear: They’ve never met a property right they don’t see fit to trample on.

How many homes are in foreclosure, really? 2% is the number I’ve seen. Let’s even call it 10%, which is overestimating by a factor of 5. Why are the problems of 10% dictating public policy, and shaping the debate, for the other 90% of us? Wake up people.

And, I assume the city will be crediting the lenders for the property taxes they are having to advance whilst their hands get tied behind their backs?

By: Chris

Chris — Fri, 28 Mar 2008 02:09:11 +0000

This is exactly the wrong approach. Foreclosures need to be orderly and swift to limit the property damage and neglect and to mitigate the impact on the neighborhood. There are plenty of people in need of affordable housing.