Bank foreclosing on businesses that have paid their mortgages

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Fri Dec 23, 2011 at 04:00 PM PST

Bank foreclosing on businesses that have paid their mortgages

by Mark E AndersenFollow for Daily Kos Labor

Sometimes when you read a news story you say to yourself, “Are you freakin’ kiddin’ me?” This is one of those stories.

WISC-TV channel 3 out of Madison, Wisconsin is reporting that up to 52 businesses in Reedsburg, Wisconsin are facing foreclosure—even though many of these businesses have never missed a mortgage payment.

The decision comes after BMO Harris, a subsidiary of the Canadian lender Bank of Montreal, took over the assets of The Reedsburg Bank. A bank spokesman declined to answer why the lender was removing from its books businesses that hadn’t missed payments.

While one man’s flag company is safe because his financing is at a different bank his non-profit church could be foreclosed on because it does not make enough money. Since when should a non-profit enterprise like a church have to make a profit? I know things have changed over the last few years because of the Great Recession; however, I did not know one of the changes was that non-profit entities had to turn a profit. But:

As many as 52 owners face losing their property, sources in Reedsburg told WISC-TV. One confirmed he was laying off some employees, while another had already moved to a new facility.

Less operating income coupled with falling property values compelled the bank to act, said one business owner, who asked to remain anonymous.

The widespread foreclosure decisions will be a burden on Reedsburg’s economy, said Dave Estes, the city’s mayor.

First off, how in the hell can it be legal for a bank to foreclose on a loan if the payments have been made on time? Second, less operating income and falling property values “Compelled the bank to act.” Seriously? We are in the middle of a recession—of course a business will have less operating income and falling property value. If the business is still making its mortgage payments on time I do not see how operating income and property value going down can compel a bank to foreclose on a business. All I can say at this point is, “Greedy fucking bastards!”

As a side note, as much as I want to blame Governor Walker for this I can’t…but I will still say:
RECALL WALKER, RECALL KLEEFISCH!

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Angie in WA State, PhilK, slinkerwink, deben, Noelle in MPLS, Shockwave, cotterperson, xynz, cinnamon68, concernedamerican, bronte17, boadicea, Aquarius40, pedrito, Ignacio Magaloni, jalbert, revsue, ManhattanMan, TexDem, coconutjones, dwahzon, hoof32, joliberal, raster44, lcrp, riverlover, alizard, zerelda, lonespark, bablhous, vacantlook, joanneleon, maybeeso in michigan, NoMoreLies, Kdoug, fixxit, SaraBeth, Ice Blue, Sandino, Ozzie, minidriver, Savvy813, Philpm, buddabelly, Patriot Daily News Clearinghouse, Russgirl, blueoasis, CF Perez, bleeding heart, Preston S, gabriella, ER Doc, doingbusinessas, Little, out of left field, Habitat Vic, karmsy, operculum, bnasley, Librarianmom, Empower Ink, JDWolverton, MikePhoenix, ScottyUrb, Calamity Jean, Lujane, Cassandra Waites, pickandshovel, luckylizard, HarpboyAK, Mike Taylor, Throw The Bums Out, ARS, shopkeeper, CamillesDad1, JesseCW, kravitz, Keith Pickering, Lacy LaPlante, astral66, jpmassar, Larsstephens, RhymesWithUrple, Broke And Unemployed, catwho, freeport beach PA, Puddytat, anonevent, Betty Pinson, the mom in the middle, ozsea1, asterkitty, California06, trumpeter, marleycat, zukesgirl64, IllanoyGal, BarackStarObama, Vatexia, jolux, DRo, DEMonrat ankle biter, No one gets out alive, jacey, anodnhajo, Flying Goat, IndieGuy, oldcrow, Trotskyrepublican, Horace Boothroyd III, peachcreek, Olkate, Margd, dotdash2u, natfroiland, Wes Lee, Jonathan Hoag, DamselleFly, glorificus

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