GAO To Probe Foreclosing Lenders Leaving Abandoned Homes In Legal Limbo

In Cleveland, Ohio, the Cleveland Plain Dealer reports:

• Federal investigators will scrutinize the practice of lenders or mortgage companies walking away from homes they have foreclosed on. The U.S. Government Accountability Office plans to delve into these so-called bank walkaways - something some consider an alarming trend in the foreclosure crisis.

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• Walkaways can happen when lenders or mortgage companies foreclose on a house but don't buy it or take it to sheriff's sale to see if someone else will. Without a sale, the homes can become abandoned trouble spots in neighborhoods. Meanwhile homeowners who have already moved out may be stunned to later learn the house is still in their names and they face back taxes and code violations.(1)

For the story, see Feds to probe 'walkaways' by some mortgage lenders.

Go here for other posts on homes being left in legal limbo.

(1) They also face possible jail time if they allow violations to go uncorrected. responsibility code violations foreclosure