Friday, June 06, 2008

Variable rate...contract enforcement


TPS regular Thomas Johnson sends along this article from WSJ; a rogue sheriff is starting to take the law into his own hands by neglecting his duty to hold court-ordered foreclosure auctions.

This is a very bad precedent to set; the only reason there isn't an uproar is that his decision to stall default auctions favors those with a face in the matter and harms the impersonal lending companies. But property rights are property rights, and contracts are contracts-- if the struggling airline companies decided to stall paychecks for a month, how would

What does this do to the incentive to buy a house in Philadelphia that you might not be able to afford? What does this do to the incentive of lending companies to operate within Philadelphia?

21 comments:

The Chosen Rob said...

and now Cleveland City Council members are trying to do the same! (I think... the article gives as little details as possible).

http://blog.cleveland.com/plaindealer/2008/06/city_council_to_ask_for_forecl.html

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