WE protested the auction of 300 homes at the Mpls Convention Center

[annm4peace]

KARE 11 - at 5:00, 6:00 and 10 pm.

http://www.kare11.com/news/news_article.aspx?storyid=566867

I went inside the Auction before joining others outside at the protest. It was pathetic.
The homes were going very quick, I would say as the bidding
started they would be over in about 5 minutes. some where cash only, they had financing available there.. and could approve some people within the time there.

They would show the picture of the home and Item #, what it sold for or market value, then starting bid. Just a couple I remembered 1 home 350,000 went built in 2006, when for 130,000.

Just something to think about

The owner of the 350,000 loan at 30fix at 6.5% is $ 2212.24

right now a 30fix at current rate of 4.875%, monthly principal and interest
is about $687.00 for the 130,000 loan.

So the bank couldn't reduce the monthly payent to $ 1212.00, or even $ 1000.00 and not foreclose on the owner ?

When the home foreclosed, the bank probably had to pay about 70,000 to the Sheriff's dept for the foreclosure process.
Then you had the loss of 350,000 minus 130,000 is 220,000.
so the banks loss is at least 290,000.

(this does not include the cost of the bank during the whole process, nor if there is theft and vandalism of the empty house)

So,,, what is motivating the banks to go with foreclosure and auction, instead of modifing loans?

Banks have been forced into modifing loans by the government.

What is the banks profit, or tax write off of the loans going to foreclosure ?

Today's auction was by REDC and the banks listed were National Financing Provider, Chase, and Homepath.

Some of the homes were just investment properties, but many are primary properties. I wish one of the reporters would just take 5 of the homes that went to auction and do a follow up story on the families who lived in those homes. That would be real reporting.

I work in mortgage so I don't need to hear that the owners knew what they were getting into, that is naive and there are just too many people who were frauded, whether in a hard way or a soft way.

http://sites.google.com/site/mncrisis/

[annm4peace]

1. Now I see why channel 5 didn't cover the protest

Channel 5 has an infomercial on after "At Issue" of the Auction company.. so for 1/2 hour you can see the homes that were foreclosed on

[Lydia Leftcoast]

2. It's the same mentality that will prompt a company to pay strikebreakers

much more than their real employees get in order to prevent the real employees from winning more money.

It's the power, not the money, that the banks are interested in retaining.