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Wednesday, February 18, 2009

How Lee County, FL Court Handles Foreclosure Cases

Obama is coming to the rescue with plans to allow judges to steal bank property and force them to subsidize borrowers. The unfortunate thing is that it's none of the government's business. In Lee County, FL, the court handles these cases slightly differently. From the WSJ:

The foreclosure hearing lasted less than 20 seconds, with Judge John Carlin asking her two questions: Are you current on your mortgage and are you living in the home? She answered no and yes and then offered to show him her paperwork.

"I don't need to see that. That's between you and the bank," he said as he gave Ms. Hill Scott, her husband and three grandchildren 60 days to work out a deal with their lender or vacate their three-bedroom house.

In many cases, it is probably in the bank's interest to renegotiate and keep the loan current rather than sell the home at a steep discount. But it is entirely up to the bank, which works to maximize value. The government sticking its nose into the lending world is what started this mess in the first place.