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Free Rent: $2.5 Million Home. The Games Banks Play

Written by Gary North on January 25, 2013

So, you want to move up. Well, then: move in.

A 23-year-old squatter broke into a $2.5 million empty house. He thereby established rights to it: squatter’s rights. He can be evicted, but only by legal action.

The Bank of America knows this. It does nothing.

All over the USA, squatters have done this for years. Banks allow it if the occupants are not tearing up the places.

Banks refuse to foreclose and evict. It costs money. Then they would have to get the homes sold. They have adopted a strategy of holding houses off the market.

Every so often, one of these squatters’ stories hits the media. The banks pretend it’s not a problem. They say nothing.

Millions of owners who have stopped paying on their mortgages live rent-free. Banks say nothing. As the legendary Lakers’ announcer Chick Hearn used to say: “No harm. No foul.”

The bank regulators allow this. It subsidizes the housing market.

For a recent article on this practice, click here.

On the specifics of the $2.5 million home, click the link.

Continue Reading on www.orlandosentinel.com

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7 thoughts on “Free Rent: $2.5 Million Home. The Games Banks Play

  1. My question is who is paying the real estate taxes on these properties?

    Starting several years ago (2007-2008) there were major discussions on something called "moral hazard" in not honoring one's own obligations and debts, and just walking away. Let's go a step further and include those individuals who run up balances on their credit cards and at a later date file bankruptcy or finds a lawyer to negotiate for settlements amounting to nickels/dimes on a dollar. Who pays the billions/trillions for these writeoffs?

    I can tell you this … most of my relatives who are in their graves could not sleep at night if they could not honor their debts.

    In just the last 5 or 6 years in this country we have created a mentality that it is totally acceptable to walk away from one's obligations. Terrible precedence. Our country is facing many, many major problems and this is one of them.

    Unfortunately laws do not hold these people accountable even to a certain degree. What a travesty.

  2. Seymour Kleerly says:

    I think the banks play the real estate taxes. It's nuts I tell ya.

  3. Actually the banks more often will choose to not pay the taxes and the house goes up for a tax lien sale. The buyer of the tax liens can evict (and is more likely to) the squatter so they can sell the property. Bankruptcy or walking away from a mortgage used to be the last resort option but now it's just a "good business" decision.

  4. Banks have shuffeled notes back and forth to the point that they have lost the origional notes on some of the property. They can not prove there is a balance due, because they do not hold a note and thus, can not foreclose. Some of the origional notes were shreaded by disgruntal employees that knew they were being laid off. Banks do not like the info I have just shared to get around…sorry..lol. They can sell their interest to an investor and the investor can foreclose.

  5. In Texas, most of the ones doing this are BLACK. And down here, we take them to court and then to jail.

    Have you noticed that advertising is using about one out of three people have to be black? Wheel of Fortune has one black player, every time. Now they are 13% of the populaton, but they are getting 60% of the government jobs and at least 33% of the TV jobs. "Friends, you have just become 2ND CLASS CITIZENS.

  6. southernconservative says:

    Whites are becoming the minority and are currently discriminated against; time for the whites to hire an "Al Sharpton" or "Jesse Jackson" to represent them.

  7. Another problem is that banks allow foreclosed properties to fall apart for lack of maintenance. In the midwest, one bank foreclosed on a house, evicted the owner, and then let the property turn into a rat-infested death trap. When the city filed suit to make the bank clean up the property, the bank responded by filing a court action to UNDO the foreclosure and give the property back to the owner, even though he had been out of it for years and was not responsible for the condition the property was in. Thankfully, the judge saw through this and threw the case out.