Thought this would be a great way to find good deals. Big banks are facing foreclsoure! So, this means you can find good deals from them, because they need to liquidate their assets. There is a good website to find failing banks: www.moneyeconomics.com click on number 4 on the right side next to the picture and scroll down the page to see the list. Click on each bank to get their info and contact them to get their assets at huge discounts. This article I have posted below, sheds some light on what is happening and will continue to happen, until the market turns around.
Real Estate's Latest Mess: Big Banks Now Face Foreclosure
By: Morgan Brennan, with Forbes
Foreclosures are back on the rise. RealtyTrac reports that foreclosure starts increased in 2012′s second quarter for the first time since 2009. One reason for the renewed uptick is the fact that lenders are finally beginning to process the backlog of defaults that they stalled on following the 2010 robo-signing scandal. Millions of homeowners have faced foreclosure over the past five years and now, another 311,000 have started the process. In an ironic twist, however, it turns out this new foreclosure wave includes some rather surprising owners: America’s biggest banks.
Take JP Morgan Chase. In April 2010, it foreclosed on and took ownership of a Homestead, Fla. condo after the homeowner defaulted on his loan and a consequent auction yielded no takers. As would be the case for any other condo owner in the development, the bank was legally required to pay monthly maintenance dues to the Homeowners’ Association (HOA), Keys Gate Community Association. But JP Morgan allegedly didn’t. Two years and nearly $20,000 in owed fees later, Keys Gate Community Association is pursuing foreclosure against the bank.
“This is not an isolated case or just about a month or two of maintenance; these are growing trends, at least here in Florida, and I would presume around the country,” asserts Ben Solomon, a managing partner at Association Law Group and the attorney representing Keys Gate. Solomon says his firm is currently working on dozens of filings like the one leveled at JP Morgan. He is aware of hundreds more. “The number of these cases is growing by the day.”
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But that’s not all. In the JP Morgan Chase Bank v. Keys Gate Community Association suit, a recent turn of events has mired the property further in legal and financial woes. Earlier this month, the bank offloaded the condo at a foreclosure sale of its own, handing over the title to an unsuspecting buyer for a mere $43,000. Now the suit extends to the new owner as ”jointly and severably liable” for those dues. (Note to distressed housing investors: always do a title search to check for liens against a property.) The condo has undergone three foreclosures in two years and now faces a fourth.
In another case, Deutsche Bank failed to pay its maintenance fees on a Broward County home it reclaimed in September 2009. The Southbridge Homeowners Association filed a lien and foreclosure suit in response. In June, two and a half years later, the bank finally coughed up the tens of thousands in back payments.
A condo at Miami‘s Palm Bay Yacht Club has suffered a similar fate. Owned by Chase Home Finance, maintenance fees haven’t allegedly been paid in more than nine months. Just this week, with a summary judgement hearing scheduled, the lender contacted the HOA’s firm to resolve the issue.
“When a bank takes title to a unit through foreclosure, it owes past due arrearage immediately and from that day forward, it is like any other owner and has to pay maintenance fees,” stresses Solomon. “Yet they ignore their own monthly obligations and sadly they turn into a second defaulted owner in a row.”
A “second defaulted owner” doesn’t just prolong the foreclosure crisis; it damages the real estate holdings of every other owner in the community. Firstly, foreclosures push the price of comparable real estate down, forcing neighboring sellers to drop prices to compete. Secondly — and perhaps lesser known — in developments with HOAs, when an owner doesn’t pay monthly dues, that default pushes the maintenance bills up for everyone else in the development and in many cases, forces the association to simultaneously cut amenities.
In Florida’s hardest hit developments, as many as 40% of units are delinquent on monthly fees, thanks to both defaulting residents and defaulting banks.
“There are no big banks that aren’t wrapped up in this trend,” adds Solomon. Cases have been leveled against Citibank, Bank of New York, Wells Fargo, Deutsche Bank, Bank of America, U.S. Bank, Countrywide, GMAC, HSBC, Washington Mutual, Penny Mac, and Aurora.
Here’s a rundown of just a few cases in which the Association Law Group has had to file liens and foreclosures for HOA clients:
* JPMorgan has not paid Keys Gate Community for over 2 years and $19,108.00 is past due on the unit’s account
* Deutsche Bank has not paid Horizons West POA for over 20 months and $23,383.00 is past due on the unit’s account
* The Bank of New York has not paid Palms HOA for over 18 months and $16, 750.00 is past due on the unit’s account
* Chase Home has not paid Palm Bay Yacht Club for over nine (9) months and $34, 617.00 is past due on the unit’s account
* Citibank has not paid Aquasol for over seven (7) months and $19,697.00 is past due on the unit’s account