The Tribune

By DENISE MAYCOCK Tribune Freeport Reporter dmaycock@tribunemedia.net FREEPORT - The activist group Families for Justice said it intends to file a lawsuit on behalf of 15 families who had their homes confiscated by local banks after they failed to pay back loans. Rev Glenroy Bethel, founder of FFJ, said they have started the process of taking legal action to recoup the money these families invested in their homes before foreclosure. "We are in the final stage of filing a class action suit against the banks for the families' equity in their homes," he said. According to Rev Bethel, FFJ launched an investigation into the foreclosure process on Grand Bahama last year after receiving numerous complaints from homeowners that their houses were being sold on improperly. "We spoke with professionals in the banking arena as well as real estate agencies and discovered that it is against the law to sell a person's property for the amount borrowed from the bank - it has to be at an appraised value," he said. Although a lender can sell a home after foreclosure for 80 per cent of the appraised value, Rev Bethel believes homeowners should get the balance after the loan has been paid back. "If a house, for example, is appraised at $200,000 and the homeowner borrowed $100,000 from the bank, and the bank forecloses on that home because the homeowner was in default, then both parties have a legal right to what is rightfully theirs," he said. He said there are many houses for sale in Grand Bahama, but few are being bought in these tough economic times. Rev Bethel said it is "inhumane" for banks to take possession of homes and put families on the streets, especially at a time when houses are not selling. "Families are being displaced with nowhere to live, some families have to resort to sleeping on the beaches in their cars. "The banks have taken the position to put families out of their homes while the economy in Grand Bahama has been in shambles for several years. "This practice by the banks we believe is inhumane. We believe the banks have no authority whatsoever when there are hundreds of families in Grand Bahama that have millions of dollars worth of equity in their homes. "We believe this action is wrong and our organisation condemns such action. "The banks have displayed no sensitivity here in the community of Grand Bahama regarding the Bahamian families," Rev Bethel said.