When you read an article like “Group Plans to Physically Block Evictions” from the Boston Herald you know things have gotten out of hand.
Here is the story of Melonie Griffiths-Evans who defaulted on a home loan from her lender. Now she faces foreclosure. But in her world that means the bank is evicting her.
They are repossessing the home just as a car dealer repossesses a car. She took out the loan was unable to pay and got into a situation which she describes in her own words as “the biggest nightmare of my life.”
What the banks do with the repossessed homes is up to them. They can do an auction, a short sale, etc. But Griffiths-Evans and distressed homeowners like her will be out of the ballgame soon.
Now a Boston group calling itself City Life is planning a protest where they will dare the police to arrest them as they block the “eviction”. This is a set-up for the 6 O’Clock news no less. There will be plenty of street drama as the single mom and her three teenagers are thrown into the street by the evil bankers.
“I don’t have anywhere to go-I really don’t,” said Griffiths-Evans.
Of course we all feel sorry for this family. But City Life’s solution is one of the worst possible scenarios in a foreclosure. City Life wants the Griffiths-Evans family to be able to stay but to pay rent for the home directly to the bank.
That won’t work folks. For one thing the banks are generally not in the property management business. That’s why they try to get rid of these properties , often selling them to real estate investors. Also almost every short sale expert will tell you renting to the defaulting family is one of the worst business decisions you can make.
City Life’s explanation – “But they’re(the lender) going to lose money anyway.”
Here’s our view.
Yes, there are lots of poorer people who got into homes they couldn’t possibly afford. That’s a tragedy. It doesn’t make me proud as a church-going American to see it. It never should have happened.
But keeping them in the homes after they have defaulted is not the way the banking system works. It may not be fair but business generally isn’t. Did she know that when she signed? She’ll claim she didn’t understand, and that may be true but people need to be better taught- and quickly, if you ask me.
And exactly where was City Life and groups like them when these people were signing these loans and getting in way over their heads? Why wasn’t there a protest then?
What can we expect in the next year?
Plenty of street theater played out by groups like City Life. But in the end, we think it was still be business as usual for real estate investors who are willing to go out after the deals and take a few risks- unless congress gets more involved.