Wednesday, November 16, 2011

Foreclosure Surplus Snatching Rackets Extending To Local Gov'ts? "City Of Brotherly Love" Stiffs Hapless Homeowners, Makes Major Move At Greedy Grab

In Philadelphia, Pennsylvania, The Philly Post reports:

  • The news that nearly $56 million had been recovered from the bowels of the sheriff’s office’s sloppy bookkeeping was welcomed by government officials. However, the former owners of properties sold at sheriff sale—who are due much of that money—continue to be victimized by government ineptitude.

  • City officials announced that the funds–including unclaimed proceeds of sheriff sales over the last dozen years when property sales generated more than the amounts owed for past-due mortgages, taxes, and utilities–would be transferred to the City’s General Fund and State Treasury.

  • But, that money was not just misplaced, it was misappropriated; taken from those who were lawfully due the funds. Unless they act deliberately and quickly to return the money to the rightful recipients, the sheriff, controller and the mayor are working to benefit government balance sheets instead of helpless property owners.(1)

For more, see "Misplaced" Funds From Sheriff's Office Legally Belong to Victimized Property Owners in Philadelphia (The mayor, sheriff and city controller have no right to give this money to the government).

(1) The City of Philadelphia is not the first government entity suspected of getting funny ideas when it comes to handling the surplus loot, which represents some of the foreclosed owner's home equity, that was commonly generated by foreclosure/sheriff's sales during the boom real estate market. See, for example, Colorado Law Incentivizes Foot Dragging By County Officials When Returning Surplus Sale Proceeds To Foreclosed Homeowners After Public Auctions.

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