Latest Posts
Home > Debt Articles > Mortgage Lenders Start to Foreclose but Stop to Leave Owners On The Hook

Mortgage Lenders Start to Foreclose but Stop to Leave Owners On The Hook

I just finished reading a really great article titled “Lenders Abandoning Foreclosed Properties” that was eye opening.

Apparently lenders are beginning the foreclosure process, the home owner moves out, but before the foreclosure sale is finalized, the lenders are halting them. This seems to leave the home vacant and still the financial responsibility of the owner that thinks they lost their house.

Instead, these owners are still on the hook for taxes and such for a home they believed to no longer be theirs. I guess the lesson to be learned here is to not move out of a foreclosed property until you get a notice of eviction.

“We do the cost-benefit analysis (for) the investor,” said Jeannine Bruin, GMAC’s executive director of mortgage communication. “Is he going to recoup any money for us to go through the whole process of foreclosing, fixing the property up, marketing it, selling it? Is anything coming back to that investor? If not, it’s best to just let the borrower keep ownership of the home.”

Unless the mortgage debt is discharged in court, the debtor may still be on the hook for the loan even though the property is vacant.

“We have a responsibility to make every effort to hold these borrowers responsible for any payments they agree to make,” said Joyce Biearman, communications manager at Home Loan Services Inc., a Bank of America subsidiary.


Get Out of Debt Guy – Twitter, G+, Facebook

Need More Help?
Choice3Get Out of Debt Guy – Twitter, G+, Facebook

Get Out of Debt Free Hotline
debt settlement helpstudent loan help

About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

Get My FREE Get Out of Debt Guy Newsletter

It is the smart thing to do.

I promise to keep your email safe and secure.


I want to keep you posted each weekday with just one email about the latest get out of debt news, scam alerts and information to beat back debt.

You can unsubscribe at any time with just one click.

After you subscribe, check your email to confirm your subscription. If the confirmation email does not appear in your inbox in a few minutes, check your spam folder for it. Sometimes it likes to annoyingly hide there.

  • It will keep you posted on the latest scams.
  • You will be alerted to the latest articles.
  • You will wind up smarter than everyone else dealing with debt.