NY Times: Banks Help Small Debt Become a Big One

[marmar]

Banks Help Small Debt Become a Big One

By JIM DWYER
Published: August 14, 2009


In his briefcase, Imar Hutchins carries a certified check for $25,000. It is a crazy amount to walk around with, but for the last nine months, a series of banks have refused to take the money, even though Mr. Hutchins owes it toward a mortgage on a small apartment building in Harlem.

In fact, the $25,000 check is the fourth and largest payment that Mr. Hutchins has tried to make after he fell one month behind last year. Since then, the banks have rejected every penny he has sent. At bewildering speed, and without telling him, the original bank — Washington Mutual — invoked a clause in the lending note and moved to seize the building, at 763 St. Nicholas Avenue, near 148th Street.

So many foreclosures are hitting the courts, the stories of greed and folly by all parties could fill volumes. But the machinery of foreclosure also has a brainless side. Even generally responsible people can get trapped among the shards of the global financial crisis.

In 2005, lenders filed foreclosures on an average of 14 properties a day across the city. This year, it is 65 per day. ...........(more)

The complete piece is at: http://www.nytimes.com/2009/08/16/nyregion/16about.html?_r=1&ref=nyregion

[varelse]

1. "Why wouldn’t a bank take money that it was owed?

There are only guesses. One possibility, Mr. Hutchins said, is that the building is worth around $700,000, considerably more than the $470,000 original mortgage."

Hmmm. I wonder how common that motive is these days?

[lunatica]

2. If there's a way they can make more money they'll do it no matter what

Their god is money. The more the better. Nothing comes second. Certainly not having to sacrifice money for any other reason than having to. IT's like telling someone to stop breathing so much so his fellow man can have a little more oxygen. There's not a chance in hell that they'll give up one iota of breath. As a matter of fact they'll breathe harder so they can get rid of the competition faster. It's called survival baby!

[varelse]

3. Their god is money

that is the god of globalism.

Aethists may be our only hope for salvation.