Chairman Jeb Hensarling

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Washington Post: ‘Million-Dollar Mortgage Goes Unpaid for Years While Couple Fights Foreclosure’
Posted by on March 06, 2012

What happens when you don’t pay your mortgage? Apparently, nothing for a long time due, in part, to government programs and policies that can drag out the foreclosure process for years.  The result is a growing backlog of foreclosures and a weak-to-nonexistent recovery in home prices.

That’s what readers of the Washington Post learned over the weekend in a story about a Maryland couple who have lived in a $1.3 million dollar mansion for five years but have never once made a mortgage payment on the custom-built, 4,900 square foot, five bedroom “manse along the Potomac River” described in the story as “a showstopper”.  The owners have been able to keep it for so long by repeatedly filing for bankruptcy and by “exploiting changes” in laws designed to help delinquent homeowners avoid foreclosure, according to the Post.

While no one would defend the practices of some lenders, this story is an example of how the foreclosure process has become broken and is sometimes abused by those who are determined to drag out the process.  And the Administration’s ever-shifting strategies and massive spending of taxpayer dollars on foreclosure mitigation programs have impeded, rather than promoted, a housing recovery.

 

NOT GOING FAST!

This custom-built, “showstopper” $1.3 million mansion features 5 BRs, incredible views of the Potomac River, Palladian windows, “magnificent sunroom” and a dining room chandelier from Europe.  And you can live in it for FREE for at least 5 years thanks to the broken foreclosure process! Read the Washington Post for details.

 

Comments
The opinions expressed below are those of their respective authors and do not necessarily represent those of this office.
  • Darrin Lebert commented on 7/14/2012
    I always thought 90 days was start of foreclosure process. It just goes to show you that borrowers can stall the default process a long time. The agreement is in the mortgage note so how it goes in their favor is beyond me. http://www.loanshoppers.net
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