Site for Free Markets and Free People

Tuesday, February 24, 2009

Case Study on Mortgage Foreclosure

Last week I posted a message about Donna Hanks, an ACORN worker who was ultimately evicted from her house after she defaulted on her mortgage. ACORN then broke into the house after it was sold, claiming it was hers.

Michelle Malkin has a couple of interesting points about this story. First, the value of Hanks home increased from $87K when she purchased it in 2001 to $270K when she refinanced it a few years later. No one knows what happened to that money. Second, she first defaulted in 2006 and despite two restructurings/workouts over the next two years, she defaulted again and was ultimately foreclosed. Then after seven months since the house was sold, she and ACORN broke into the house claiming it was hers.

If this isn't a case study in irresponsibility on the part of the borrower and criminality on the part of ACORN, I don't know what is.