SC Independent, 09/14/2016 So much for the "We just need this company "in case". We'll never need to use it. We aren't in the foreclosure business." Drivel that the board spewed in our direction.
Thanks for the post V, i read the article and scratched my head as to understand what exactly was going on and being said. From recollection; the word from board members was the Holding Company would only play a role if and when a property was placed up for auction following a foreclosure and they needed to bid on it to recover their costs. More pointedly, they would only bid $1 more than what they were owed and that would only happen if there weren't other bidders out there involved in the bidding willing to bid more than that. So, how the hell does this story in the Independent make any sense? The RCSC sent out a link to the articles of incorporation and the by-laws and after reading them, find nothing that explains or suggests that corporation will have anything to do with the foreclosure process. Clearly, they aren't owed anything, so it would be the RCSC that would force a property to foreclosure. They have no skin in the game unless the foreclosed property is bid on and won by the them. It will be interesting to watch this unfold, because i know for a fact there are some of us who wrote down verbatim what we were told at the meeting by the board members answering our questions regarding how this new company will function. Stay tuned, it should get gooder...or is that more good?
I reread the article in the Independent again, and i'm still confused. I'm sure one of the board members will stop by TOSC and enlighten us (said with a smirk). The argument was made by the communications director the holding company would act similar to that of bank owned properties who had a holding company to act on behalf of the bank. Sounds great Jo, but that's not what we were told at the meeting. And let's be straight up about it; if a bank takes a property to foreclosure, they have first lien and their only goal is to recover as much of the outstanding loan as they can. The RCSC has a minimal amount owed them and in no way shape or form are they in the same position. But there's more: In reading it, it now appears if there are delinquencies, the board will turn it over to the holding company. Hope i'm reading it wrong, but it's what the article implied. That flies in the face of what we were told at the meetings when they said the holding company was only there to bid on properties that were selling too cheaply to get the amount they were owed back. Why does that matter? Because if the board of nine is making decisions to foreclose on a property, we (the community) will have recourse if they become foreclosure crazy. If the smaller holding company (four board members and a staffer) does it, there's no record available to us (the community) of their actions. I see it as a horrible precedent for this community to try and shield what they (the RCSC) are doing from the public eye, but it has become the direction of the board over the last 10 years and that is just plain troubling.
