The article kind of contradicts itself. At one point it makes the following claim (which is also implied by the article title):
The foreclosed homeowners are the ultimate victims of the bid-rigging, federal investigators said. Any money earned at auction beyond the debt owed on the house is supposed to be returned to the former owner.
But then goes on to say:
As banks felt the burden of holding so many homes, they held a fire sale and began asking even less than what was owed on the properties. In 2009, the average asking price dropped 57 percent below what was owed on the homes, according to Property Radar. These heavily discounted homes flooded the auctions.
If the bank is getting less than they are owed then the foreclosed homeowners were never going to see any money anyway since there was no extra. Those homes were going to be purchased below debt level regardless of who was bidding and whether they were going to flip it right away to "the Group." Banks are not in the real-estate business. They are in the money business. Most foreclosure sales are the bank trying to cut its losses. They can write off a few grand easier than a few hundred grand.
The foreclosed homeowners are the ultimate victims of the bid-rigging, federal investigators said. Any money earned at auction beyond the debt owed on the house is supposed to be returned to the former owner.
But then goes on to say:
As banks felt the burden of holding so many homes, they held a fire sale and began asking even less than what was owed on the properties. In 2009, the average asking price dropped 57 percent below what was owed on the homes, according to Property Radar. These heavily discounted homes flooded the auctions.
If the bank is getting less than they are owed then the foreclosed homeowners were never going to see any money anyway since there was no extra. Those homes were going to be purchased below debt level regardless of who was bidding and whether they were going to flip it right away to "the Group." Banks are not in the real-estate business. They are in the money business. Most foreclosure sales are the bank trying to cut its losses. They can write off a few grand easier than a few hundred grand.
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