Foreclosure Related Deaths – Tragic and Avoidable

There has not been much discussion about the greatest of problems associated with foreclosures –  death; it may be in the form of suicide, murder or accident. Individuals alone cannot be blamed for messing financing – Wall Street created the environment for the mess up.

Some of the foreclosure related deaths are tragic and avoidable. Domingo Cedano purchased a house in Bronx in 2005. The property was foreclosed upon but as per the records of the city Cedano continued to be the owner. Most probably the ball is in the court of the new owner (trustee acting on behalf of the securitization) to update the transfer but it was convenient not to do so; Cedano could be held responsible for house tax.

Irrespective of the condition of the city records, the current owner has the responsibility for maintaining the unit. Vericrest Financial had been hired by the trustee, Bank of New York, for managing the property – action that was never seen. The situation continued to worsen.

About one year previously a law of New York State has clarified that once a property enters foreclosure it is the responsibility of the lenders to take care of it. Jeffrey D. Klein (State Senator) said, “The legislation required that once a foreclosure takes place, it’s up to the bank or whoever foreclosed on the property to take care of it, maintain it, make sure it’s safe. If not, the local building department can go in and make the proper repairs”.

But it did not take place in the instance of 2321 Prospect. Responding to complaints regarding illegal division and other matters in the building, the inspectors of the city visited the property ten times but they were not allowed to enter; they managed to leave behind notices outside. Notices were mailed to Cedano – the name listed as owner of the unit said a spokesperson of the Building Department of the city, Tony Sclafani.

Recently a fire raged through the property. Walls erected illegally on one of the floors blocked entry of one of the units leading to the fire escape leading to the death of three – a couple and their pre-teen son, in the arson.

Thus there are serious implications when the banks permit delinquent borrowers who are severely in debt to continue to stay thwarting foreclosure. It indicates how careless and inefficient property managers the banks are. It is often a question of life and death.