Tuesday, August 23, 2011

3 Yrs. After F'closure Filing, Banksters' Lien Priority Fight Leaves Owner Of Long-Vacated Home Facing 'Foreclosure Limbo;' Misses Out On $40K Savings

In Berwyn, Illinois, NBC Chicago reports:

  • Three years after filing foreclosure, one Berwyn resident says she's still unable to move on because her home -- and her credit -- are being held hostage by a pair of banks.

  • "They're fighting over who has first position, who has the second position, who's entitled if the house sells, who gets the money first, who doesn't," explained Kathy Gillin.

  • Gillin said she was emotional the day she moved out of her home. During the 15 years she owned it, many good memories were built. But when her mortgage rates skyrocketed and a bank wouldn’t modify her loan, she says her investment became a losing proposition.

  • She opted to file for personal bankruptcy. "It was decided the best thing to do was file for bankruptcy and turn the house back over to the banks," Gillin said.

  • But an unexpected obstacle was blocking her new beginning. The two banks holding liens on the home are fighting in court over a technical issue, holding Gillin up in the process.


  • For many homeowners, the chance to live rent-free in a home they are losing could be a bittersweet gift. But no one told Gillin she could do that. She moved out and tried to move on. Had she stayed, she could have saved nearly $40,000.

  • "It’s a nice house. It’s ridiculous it is empty," she said. "I want someone else to have the house if I can't have it. Why shouldn't someone else be able to paint it whatever color they want or play in the yard or put flowers in the yard?"

For more, see Homes Held Hostage in Foreclosure (Suburban homeowner can't get rid of the home she thought she'd already lost).

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