Hedge funds get cheap homes, homeowners get the boot

[n2doc]

By Jared Bennett

Julius Uwansc was in trouble with his mortgage after refinancing in 2009, just after the real estate bubble popped. Like millions of others, he found himself owing more on his house than it was worth.

The Nigerian-born father of four moved into his house on Richardson Road in Gwynn Oak, Maryland, in 2005. “We loved it because it has this big yard where the kids can play,” Uwansc says.

But soon after closing on the loan, Uwansc began having trouble making payments. He believed he had worked out a loan modification with Bank of America in 2011 after signing paperwork, but the bank disputed the terms Uwansc thought he had secured. When he didn’t pay the amount the bank said he owed, it claimed he was in default.

Uwansc’s mortgage was insured by the Federal Housing Administration, meaning if he failed to make payments, the bank would typically be paid the full value of what was left of the mortgage, plus costs associated with servicing the debt.

more
http://www.publicintegrity.org/2015/09/23/18030/hedge-funds-get-cheap-homes-homeowners-get-boot

[99th_Monkey]

1. Yep. Wall St. greed-heads are buying up houses in Portland OR

where our housing crisis was already horrendous ... assholes.

We need Bernie in the WH or this shit will never end.

[closeupready]

4. Yesterday, this claim was made in another thread. Sure enough,

I checked Craig's List for Portland apartment listings - WOW! Seems comparable to what people pay in New York. Like $1,500 for a 1BR.

[99th_Monkey]

5. But Rent-Control laws are too "socialist"

I'm so grateful for Bernie calling bullshit on the "S word" is o-o-o-o, so scary,
but that's just the first step .. I think we need to get that -- or something like
it -- back on in the public discussions locally.

[Baitball Blogger]

2. I'm surprised at the number of people I know who are losing or lost their houses.

And these are hard working people. That is what shocks me the most. All of them had decent jobs.

They also had dependents with lots of unexpected expenses throughout the year. Some involved fixing car troubles for their college-aged kids so the kids could get to work and school. And another just couldn't keep up with the cost of home repairs and maintaining a great home decorating business that has suffered through the down times. She tried to keep it afloat with multiple tenants, but, I think she was served papers.

[CrispyQ]

3. Rent in my area is ridiculous.

$1,000-$1,200 per bedroom. Yikes!