Mar 30

Banks Continue to Need to be Forced to the Bargaining Table

By Michael C. Klasfeld,

It still is out there.  Banks insisting on $450,000 to save a home worth $135,000 and then, after they throw the homeowner out on the street, pay $10,000 to rehabilitate the property, pay $6,000.00 in brokerage fees, and thousands more on general closing costs, sell the property 8-24 months later for $95,000.  The only solution we’ve been able to find out there is to hold the bank’s feet to the fire in the foreclosure suit to make them come, in good faith, to the bargaining table.   And even then, in my experience, they rarely come to the table then in good faith.

To add insult to injury, when I asked my Circuit Civil Mediator continuing education professor about what were our rights to object to the court that the bank came in bad faith, what did she tell me was the standing rule?  She said, you cannot complain to the court, because the bad faith came during mediation,… mediation is protected by confidentiality, … and therefore you could be sanctioned if you come to the court with such an objection because in doing so you will be disclosing privileged confidential mediation information.

So, I guess the only answer is you need a litigant on your side that will fight the bank hard enough to require them to negotiate with you in good faith.  I wish I had a better and less litigious answer.


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