In these cases, various lenders may be trying to preserve the value of properties that they expect will be foreclosed upon. And they may have a right to do just that if a property is abandoned.
“It looks to be a failure for the banks to actually investigate whether someone is still residing in the home,” said Audrey Udashen, the attorney who represents Cox.
Udashen works for the NW Consumer Law Center, a nonprofit that represents homeowners in their negotiations with banks. The firm says it is aware of at least five cases like Cox’s — where homeowners are still actively involved with the property the bank is trying to lock up.
Cox is in “default” on her payments but she still clearly owns and cares for the property, according to her lawyer.
Banks moving to lock out homeowners may be a relatively new trend, one that was not seen during the foreclosure crisis that began in 2007. During that period there was a large inventory of foreclosed homes, but not many buyers. Now a rebounding housing market boosts the value of homes like Robyn Cox’s.
Read the rest here...