The New York Times published an article about cases around the country involving banks sending contractors to houses when the homeowner is in default. There were some horror stories about contents being thrown away, utilities being shut off, causing food spoilage and other damage to the house. A clause in most mortgages allows banks that service the loan to enter a home and secure it if it is in default, meaning if the mortgage payment is 45 to 60 days late, and if the house has been abandoned, banks said. How many of our clients who are in financial trouble know that?
Banks claims they enter, change the locks, etc. in order to protect the property from vandalism or damage for which the bank could be liable. Hmm. Now how would that explain one incident recounted by the Times where, according to assertions in a lawsuit filed by a homeowner in August, contractors working for Chase Bank used a screwdriver to enter Debra Fischer’s house in Punta Gorda and helped themselves to a laptop, an iPod, a cordless drill, six bottles of wine and a frosty beer, left half-empty on the counter. Ms. Fisher was facing foreclosure, but Chase had not yet obtained a court order, her lawyer says.
In another case, the Times told about a woman in California who arrived at her mountain retreat to find the contents missing--including a box containing her husband's cremains. She, too, is suing the bank.
The NY Times article, In a sign of foreclosure flaws, suits claim break-ins by banks, by Andrew Martin, last accessed December 21, 2010 may be read here. You may want to forward this to clients who are in default on their mortgage. Copy and paste this URL into an email if you want to send this article to clients. http://tinyurl.com/23kgvvx
Comments