How a Philadelphia Family Lost Their Home to Asset Forfeiture

[radcen]

How a Philadelphia Family Lost Their Home to Asset Forfeiture

How a Philadelphia Family Lost Their Home to Asset Forfeiture | The Institute for Justice

From the article:
“But on her own now, and unable to pay rent on top of the mortgage on the house she was barred from entering, she began missing mortgage payments. When the DA did eventually withdraw its forfeiture case against the Leinos’ house, it was only because the bank had already foreclosed.”

If the house were bought from drug money, why would its now-foreclosed status make a difference?

Oh, that's right. :doh The bank has the resources and connections to fight it.

 

[Fisher]

If the house were bought from drug money, why would its now-foreclosed status make a difference?

Oh, that's right. :doh The bank has the resources and connections to fight it.

I don't know about in Pennsylvania, but under the federal statute, lienholders have a right to assert the validity of their lien that take priority over the civil forfeiture. I assume they are a race-notice jurisdiction like most states. Sounds to me like they foreclosed before the state had perfected a lien so there was nothing left to be forfeited.

 

[radcen]

I don't know about in Pennsylvania, but under the federal statute, lienholders have a right to assert the validity of their lien that take priority over the civil forfeiture. I assume they are a race-notice jurisdiction like most states. Sounds to me like they foreclosed before the state had perfected a lien so there was nothing left to be forfeited.

Actually, that wouldn't surprise me, but I'd still count that among "connections" in the sense of lobbying to protect their own interests when the laws are written. Lowly citizen be damned, but the lien holder must be protected.

 

[MaggieD]

If the house were bought from drug money, why would its now-foreclosed status make a difference?

Oh, that's right. :doh The bank has the resources and connections to fight it.

The bank doesn't need to fight it. The state withdrew the asset forfeiture claim.

This is a crime. I say it's in violation of our constitution guaranteeing due process. IF the guy had been found guilty? That's another kettle of fish. Without that . . . just filing the asset forfeiture claim and kicking out the occupants . . . our constitutional rights are being violated BIG time.

Where is the ACLU to fight THIS??

 

[Fisher]

Actually, that wouldn't surprise me, but I'd still count that among "connections" in the sense of lobbying to protect their own interests when the laws are written. Lowly citizen be damned, but the lien holder must be protected.

Not really. It is typically a race to the courthouse. Liens are generally prioritized in the order in which they are placed absent a bankruptcy reprioritizing them. Government liens are generally given priority over others by defeault which is why a lot of lenders require you pay property taxes to them in your escrows and then they pay them so that they can insure that they remain in first lien position. We have encountered federal liens of various ilks on a fairly routine basis and they, at least, have always been willing to release them as to the property just so long as the owner wasn't getting any of the money--otherwise it had to come to them. The feds are pretty proactive in putting those fines and costs liens and income tax liens onto property whether or not forfeiture comes into play.

Besides, the feds back so many mortgages, they would be slitting their own throat to stop a sale to a bona fide purchaser because of one of their own liens because then they would have to pay off the lender, list it for sale, find a buyer for the property, and pay realtor commissions themselves as opposed to letting someone else do/pay for all that.

 

[Caine]

If the house were bought from drug money, why would its now-foreclosed status make a difference?

Oh, that's right. :doh The bank has the resources and connections to fight it.

Your looking at it wrong.

Once the bank Foreclosed....... The drug folks lost their house due to their involvement in drugs.....thus the DA didn't have to make that happen anymore.

It isn't ALWAYS about MONEY MONEY MONEY.