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Monday, April 30, 2012

Florida: ''Neighborhoods crumble as thousands of homes sit in legal limbo, Sun Sentinel finds''

From Sun Sentinel

"Banks that made reckless home loans have been tiptoeing away from foreclosures in a tactic designed to cut their losses. The result: Orphaned, dilapidated homes dot the landscape from Kendall to Lake Worth.

There are no owners willing to claim and care for them.

A months-long Sun Sentinel investigation of property code violations involving abandoned homes uncovered case after case in which banks launched foreclosure lawsuits but then stalled or avoided taking ownership. In effect, the banks legally sidestepped responsibility for the empty homes, causing great harm to neighborhoods.

The real estate industry calls such properties "bank walkaways." They are no longer maintained by their legal owners, whether they were investors bailing out of unwise deals or families in financial ruin who decamped.''

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