So the Sheriff here in Cook County Illinois (where Chicago is) has announced that he will no longer be forcibly evicted individuals whose properties have foreclosed as a result (or cause) of the mortgage crisis.
“We will no longer be a party to something that’s so unjust,” a visibly angry Cook County Sheriff Tom Dart said at a news conference.”
Instead, he will ask that the banks seeking to re-possess the properties present him with court affidavits that prove that ” the home’s occupant is either the owner or has been properly notified of the foreclosure proceedings.” What the banks have been doing, apparently, is not certifying that the the occupants of the properties are in fact the homeowners- and in the event that those occupants are renters, they aren’t giving them 120 days notice that property they are renting is under foreclosure. Shady.
So long as the Sheriff is actively enforcing a law that has, in his words, been “routinely ignored”, I think this is just. Whether this is good for the economy is another question. Now, the Chicago real estate market won’t itself have a large impact on the mortgage holding banks’ financial situation, but it’s interesting to weigh the benefits of this type of more rigorous standard for eviction proceedings. The practical result of this is that banks, already short on capital, are having a more difficult time reclaiming the properties they now own due to outstanding, unpaid mortgages. On a macro-level, this isn’t good. If they cannot squeeze as much money out of the properties they now own due to defaults on mortgages, then their fiscal situations may only worsen. Anyway, thoughts?