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Wednesday, December 09, 2015
Ind. Gov't. - "Giving lenders the power to foreclose without going to court would be giving the foxes the keys to the hen houses"
Following up on Brian Eason's Indianapolis Star series on abandoned housing (see ILB post from Dec. 1), the Star today has a letter from Prof. Florence Wagman Roisman, Indiana University Robert H. McKinney School of Law:
Many thanks to The Star for its important series about abandoned housing in Indianapolis. Reforms are needed with respect to abandoned housing and with respect to housing that is occupied. Unscrupulous landlords subject many residents and neighbors to unhealthy and dangerous conditions for whichneither the city inspection system nor the courts provide redress.
However, Sen. Jim Merritt’s suggestion that Indiana abandon judicial foreclosure and adopt non-judicial, “power-of-sale” foreclosure should not be pursued. Lenders would love such a change, but homeowners and the public would be harmed by it. The shocking disclosures about “robo-signing” and other illegal activities by home mortgage lenders were made because about half the states require judicial supervision of foreclosures. If foreclosure were easier and faster, we’d have many more abandoned houses, and studies have shown how lenders fail to maintain those real estate owned properties. Giving lenders the power to foreclose without going to court would be giving the foxes the keys to the hen houses.
Posted by Marcia Oddi on December 9, 2015 01:39 PM
Posted to Indiana Government