Here’s an article from Sunday’s New York Times about a strange phenomenon indeed.
Apparently, some properties are so worthless in the eyes of some banks that they aren’t worth the price of foreclosure.
You too may be get lucky I suppose–in this story, the homeowner was told by the city she lives that the loan servicer was defunct, its parent company dissolved, and the bank that originally sold her loan had no records of the sale.
She gets her house back, but does she want it? By the time this homeowner was told the house was hers again, the house had been vandalized and stripped of all valuable fixtures. (Do you remember the house from the movie Fight Club?)
The way out of this mess is to bring bank and homeowner to the table BEFORE the house is trashed.
If you are a homeowner who is facing foreclosure and about to pull up stakes and walk away, keep in mind that abandoning your home could open you up to both civil and criminal liability. Talk to an attorney before you decide to do this.