Saturday, February 5, 2011

Are delinquent borrowers slowing foreclosure process?

According to Charles Blumenkehl, managing partner for Blue Asset Management, "A percentage of long-delinquent borrowers are taking advantage of every opportunity they can to extend the mortgage foreclosure process while staying in their houses without having to pay their mortgage, taxes and insurance while allowing the properties to deteriorate rather than provide needed maintenance as required."

Blumnkehl continued, “We’re not talking about the homeowner who has no assets, or are unemployed. We are seeing borrowers who are trying to hide their assets, some of which are substantial, file multiple bankruptcies and frivolous motions with the courts, all of which are designed to stall the process so they can continue to save and hide their money at their lenders expense.” “The net result,” according to Blumenkehl, “is that the lenders have to spend more money carrying these bad loans and impacting the overall economic recovery by maintaining high leverages on the books of the lenders while lowering the value and increasing the carry of their assets.”

Blumenkehl is convinced that with the already overwhelming burden on the court systems to assist the lenders in rightfully regaining their properties, this adds to the courts agenda, costing taxpayers more money while extending the ability of the country to recover from the economic meltdown and high unemployment rates. “Until these ‘deadbeats’ are removed from the property, or the courts somehow find a way for these underhanded strategies to be engaged, more people will go longer without jobs, and the country as a whole will pay the price.”

Blue Asset Management was founded by Charles Blumenkehl in 2008 to leverage opportunities resultant from the mortgage crisis and to assist their borrowers and lenders in monetizing their assets and being given the opportunity to start again. For more information about Blue Asset Management LLC or Charles Blumenkehl log on to the company website at www.blueassetmanagementllc or call the company directly at 973 835-1400.

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