Wayne County Puts on Hold Sale of Foreclosed Units

February 11th, 2009 | Tags: Foreclosed Homes

The office of the Sheriff in Wayne County has stopped the sale of all foreclosed units until qualified borrowers have got a chance to get help and save their homes by making use of a federal measure.

The Congress sanctioned funds through TARP or Troubled Asset Relief Funds. The Sheriffs across Michigan now has the right to stop foreclosure sales. Sheriff Warren Evans disclosed this on Monday 2nd February while addressing a press conference. The moratorium will come into effect from Wednesday 4th. It does not prevent the lenders from foreclosing but it allows the Sheriff not to agree to sell these until certain conditions are met.

Evans said in no uncertain terms, “I cannot in clear conscience allow any more families to lose their homes through foreclosure sale until I’m satisfied they have been offered every option they are entitled to under the law to avoid foreclosure. The sale is what pre-empts the person from having an option later to renegotiate the mortgage.”

Vacant foreclosed houses are helping neither the lender nor the borrower. Eventually the local administration and the general public pay the price for these units that attract crime and disease. The prices of houses in the neighbourhood are drastically pulled down because of these foreclosed homes. Evans reiterated, “It’s just a vacant house that is going to be scavenged. The copper is going to be taken. It’s going to be a blight in the neighborhood. Common sense would tell me that occupying that house by anybody would be better for the structure than the person not being in it.”

In January this year Evans had corresponded with Governor Jennifer Granholm asking for an order from the executive that would impose a hold on foreclosures for a period of six months. But a spokesperson Liz Boyd said that the governor did not have the right to issue such an order.

The office of Evans deals with auctions for entire Wayne County inclusive of Detroit – one of the lead cities in foreclosure numbers. In 2008 nearly 20,000 foreclosures had been listed in Wayne County. In 2007 the number had been 30,000. Per week on an average 300 to 400 houses are auctioned in the county. For each sale the Sheriff’s office takes $50.

The Sheriff’s department has been facing a budget deficit since last year and is crossing swords with the executive of the county Rober Finano over this issue of balancing the budget.