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EDITORIAL: Foreclosures Close-Up.(Editorial)

Mortgage Servicing News

| October 01, 2008 | COPYRIGHT 2008 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

As a journalist covering the foreclosure crisis from what often seems like an altitude of 36,000 feet, it's easy to miss the details.

This editor recently toured a bevy of foreclosed condos for sale in his hometown of Minneapolis. What's striking on the ground is first the sheer volume of REO being marketed in a city that has felt the impact of the housing crisis but is not at its epicenter.

In Minneapolis, the downtown building boom was miniscule compared to that in Miami. But it, too, has gone bust. And there's no better example of the fallout than a condo conversion called The Sexton, whose problems have been well documented in the local media. The Sexton's fate rests on what comes out of a cesspool of litigation and acrimony that has embroiled the construction lender, federal investigators, two developers and the association's owners. To top it off: an infestation of mortgage fraud resulted in several sales at wildly inflated prices, leading to costly foreclosures and a stigma on the building. Now, lenders won't touch The Sexton. What's ...

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