Banks, collection firms pursue claims after homes foreclosed
Massachusetts homeowners who’ve lost properties to the state’s foreclosure crisis are finding that their troubles don’t necessarily end when the auctioneer’s gavel falls.
That’s because foreclosure auctions in today’s weak housing market rarely net enough to pay off properties’ first mortgages, let alone any second liens.
Bay State consumers are often technically on the hook for any remaining balances under laws lenders haven’t traditionally enforced, but are beginning to employ more and more.
What are you thoughts? Should homeowners be responsible for mortgage debt after the foreclosure?
Interesting article from the Boston Herald
File Under: Should Banks kick’em when they’re down?