“We must not allow our local communities to be shut out while big banks—who just happen to be getting billions of dollars from the taxpayers—sell these properties in our community,” said Kaptur, a fierce opponent of the Wall Street bailout bill.  Kaptur said she objected to “outside investors” bidding on properties while communities are still waiting on funds to perform mortgage workouts or buy housing stock for rehabilitation or demolition.

“I have been concerned all along that the foreclosure prevention bill that became law in August was inadequate to address the magnitude of the problem in Toledo, Sandusky and other communities,” Kaptur said.  “We need time for our local communities to prepare their plans and get their allocations from the federal government.  Auctions such as these, however, take away any chance for our communities to deal with this situation in a positive manner, including buying at least some of the affected properties.”

She noted that foreclosures in Lucas County, the largest county in the Ninth Congressional District, probably exceeded last year’s total sometime this year.  Total foreclosures in Lucas County last year were 3,486; foreclosures through October of this year were 3,427 and were expected to top 4,000 for the year.

“It is important for the American people to know who is benefiting off our people’s pain.  Instead of working with homeowners to renegotiate their mortgages, these very same firms who have received bailout monies are now auctioning off those homes—quite possibly to outside investors—even before local governments are given the tools they need.”

Kaptur said local citizens should be aware that “there are those in our society who are making untold billions off the pain of our people.  They should be brought to justice, no matter how long it takes.”

Kaptur said the city of Toledo is projected to receive approximately $12.2 million from the federal Neighborhood Stabilization Program.  The state will receive an additional $117 million, some of which could end up in Toledo.  She said state and local governments will be able to use their grants to acquire land and property, demolish or rehabilitate abandoned properties, and/or offer down payment and closing cost assistance.  They can also create land banks to assemble, manage or dispose of vacant land.

“Unless we delay these premature auctions, those megabanks who did this damage to America's families will benefit even more,” Kaptur said. “Not only did they make billions of dollars before the housing bubble burst, now they will acquire property at rock bottom prices through sheriff's sales, then resell units, and by dumping new mortgages to FHA insurance, they minimize their risk while positioning themselves to benefit handsomely on the upside as property values increase over time. In other words, the taxpayers eat their risk, they are made more than whole, while millions of our citizens go bankrupt and are foreclosed."

Kaptur urged homeowners to seek foreclosure counseling by calling 211.