MORTGAGE
TERMINATOR? |
An
Opinion By Jan Bergemann Published November 9, 2010
Let's make one thing very clear: Many of the executives of the banking industry may be crooks and/or incompetent greedy morons, but they surely are not stupid when it comes to MONEY! Greed has driven the collapse of our economy.
So if you read that a bank voluntarily let go of a first mortgage, don't just believe the headline: New legal tactic helps associations gain control of abandoned condos
The Association Law Group dubbed their tactic "The Mortgage Terminator" -- hoping to attract more clients desperate for solutions to the financial disaster many of them are facing. I rather call it a "bank's smart move to get rid of a liability at the expense of the owners.”
Just read the COURT DOCUMENTS [COMPLAINT TO QUIET TITLE + MOTION FOR DEFAULT FINAL JUDGMENT] regarding this case [Palm Aire Gardens Condominium Association vs. Wells Fargo Bank] and look behind the scenes of this specific association. You will quickly realize that it was really Wells Fargo Bank that came out ahead, because the actual value of the unit was much lower than the cost of this procedure. Walking away was actually a smart move by the bank, leaving the other owners in this association holding the bag.
The great promise behind this so-called victory: A mortgage-free condo unit that can be rented!
Not so fast! Consider the cost of the legal procedure, the loss of minimum one year of association dues, and the cost of even making this unit a rentable place. Now the association has to rent that unit for many, many years just to break even. And it requires even more money to get this unit ready to put it on the market -- money many communities just don't have!
Never forget: The so-called MORTGAGE TERMINATOR can quickly turn into a MONEY PIT! |