By Sam Foster
I don't normally do this; make a post out of a thoughtless liberal troll, but this is a point that I've been meaning to make known to the blogiverse for two years now and I've never had the impetus.
Earlier today, I broke the news that ACORN was back to shaking down the banks. It's well worth the read, but some troll who apparently thinks themselves an expert banker decided to make the following foolish statement:
If I was a mayor of a municipalities that is being affected by the lending practices of the banking industry, especially in light of the fact that local municipalities depend upon property taxes for their income, I would have no problem "rewarding" the banks that did the most to ensure that foreclosures did not negatively impact the revenue stream of my municipality.
I sure wouldn't need ACORN or anyone else to educate me on standard business practices...I believe in capitalism its called "taking care of the people that take care of you...."
I didn't realize that this was racketeering or communism. How many folks who read this blog have their checking accounts with the same banks that they have their home mortgage with?
I usually have a lot of patience for trolls, but I've read so much stupidity with regards to banks and foreclosures, I couldn't resist. It is a perfect example of ignorance for the mortgage and banking process.
Since a home is bought with the bank's money, the bank is the only party left hanging out to dry if property taxes are unpaid and go into tax sale. Just because a homeowner stops paying the mortgage, liberal idiots, like the commenter above seem to think that taxes just go unpaid. They don't. Because if they did the property would go into tax foreclosure.
Banks pay the property taxes and they will continue paying the homeowner's property taxes while the very long foreclosure process commences. They continue paying the property taxes until the house is resold.
So the idea that foreclosures endanger property taxes is scurrilous. In fact, banks are more timely with paying property taxes than homeowners. Many banks hire companies that specialize in nothing but paying property taxes. Banks often pay electronically and all in one big payment, which usually is all automated, saving municipalities lots of time, money and resources.
Furthermore, it is capricious for local municipalities, in particular, to be complaining about banks because if it wasn't for the banks and their interest in the property, local tax revenue would reach to such low levels during this last recession, they'd be begging for a budget that mirrors Greece's.
Now I wonder, does Tao the troll really need me to go into how this organizing effort by ACORN mirrors Karl Marx call for a proletariat uprising?