Frustrated Owner Bulldozes Home Ahead Of Foreclosure

[DaveSimmons]

I wonder what he did to his brother to get sued in the first place?

Nice guy if he started all this by cheating his brother out of his share of the business, or siphoned off money for ATOT's favorite tax write off of hookers 'n' blow.

 

[CPA]

Because it takes a long time these days to sell your house.

10 Fucking years!?

 

[Slew Foot]

I hope that guy gets royally fucked. Up the ass with a hot poker preferably.

 

[Red Squirrel]

The money's pretty useless to the bank if it's in his possession though.
I doubt the electric company will leave me alone if I don't pay the next bill, but instead just tell them, "I have the money right here."

Sounds more like he was stupid with his money, and then criminally stupid with what was still partially the bank's property.

From the sound of it, he was ready to give it to the bank, pure cash. He got the money but they said no since they'd make more money through foreclosure. The bank was basically being greedy. If they foreclose and sell his house then they made the money he paid so far + the full price of the house.

 

[LegendKiller]

From the sound of it, he was ready to give it to the bank, pure cash. He got the money but they said no since they'd make more money through foreclosure. The bank was basically being greedy. If they foreclose and sell his house then they made the money he paid so far + the full price of the house.

As mentioned before, he used the house as collateral for a business loan. The bank probably lost a lot more money on the business loan he defaulted on. It's their responsibility to their shareholders and depositors to recoup that money, through whatever means needed.

He was a deadbeat, his fault, not theirs.

 

[Fern]

i don't understand how they can refuse the amount owed on their note, more even, and then take the house to sell for a larger profit

that seems like theft to me, how is that legal?

One more time, the bank can only get what is owed to them. When a home (or any property) is sold in foreclosure any amount in excess of that owed is NOT allowed to be kept by the bank, it must be returned to the (former) property owner (or other lien holders subordinated to the bank lien).

And "NO" the bank can't refuse to take payment on the mortgage and foreclose. If the home had been his he could have sold it for $170K and paid off the bank with $160K, the bank wouldn't have a say in it anymore than any other home sold subject to a mortgage (like 99% of pre-existing ome sales). In fact, the bank wouldn't have know about it. How many people go to sell their house but first call their bank for permission? None. The closing agent just escrows enough to pay off the bank. The bank learns about the sale when they receive their check.

The bank is not profiting, and this guy was clearly up to shenaginans, it's just that the article is crappy and not explaining what happened.

Fern

 

[Slapstick]

Awesome! Unless there's some fine print somewhere, I can't see how this is illegal either. He does own the house. if I want to, I can tear down my house and rebuild it, or do something else with the land. I still have to pay the mortgage, but if the bank is taking it away from me, then they have to try to sell a 300k piece of rubble.

Hilarious. Given his side of the story I am on his side. IF he had the money to pay then the bank has no reason to try to foreclose his house.

You might want to read your mortgage contract again. It doesn't work that way. It's not in small print either it's in very large print.

Of course if you did own a house you wouldn't advocate "screws over the bank big time". If everyone did this you would never have gotten a mortgage, there would be no bank willing to loan money to the small guys.

 

[tcsenter]

Missing but crucial bit of information:

Hoskins said the Internal Revenue Service placed liens on his carpet store and commercial property on state Route 125 after his brother, a one-time business partner, sued him. The bank claimed his home as collateral, Hoskins said, and went after both his residential and commercial properties.

 

[waggy]

I read the article, and it appears that the home was collateral on a loan he had for his business. They foreclosed because of that loan. He offered to cover the mortgage + $10k, which probably wouldn't put a dent in the business loan.

If the house was truly worth $350k and he had someone who was going to pay $170k for it, he was probably trying to do something shady to get the house extricated from the business loan. Why WOULD the bank take less when they could get more and they were owed more? Why SHOULD they? If they recovered more than they were owed he would have gotten the difference - they were just looking to break even.

Unfortunately this guy's trouble will probably end with bankruptcy. He really deserves much worse.

yeah it didnt make sense at first. but that sounds right. he owes money and the house was callatral. WHY should the bank take $170 when he owes the bank a lot more? i agree with the bank on this.

hopefully the guy gets sued for a lot. sounds like he deserves it.

 

[Red Squirrel]

You might want to read your mortgage contract again. It doesn't work that way. It's not in small print either it's in very large print.

Of course if you did own a house you wouldn't advocate "screws over the bank big time". If everyone did this you would never have gotten a mortgage, there would be no bank willing to loan money to the small guys.

True but my bank has been good to me and actually does what they're meant to do, serve their clients.

The bank in this article tried to screw over that guy, well, they kinda won because now he has no house. I don't think I would of handled it the way he did, but I'm 100% with him on fighting it. Personally if I would have been him I would of gotten a good lawyer that hates banks, and maybe he would of got somewhere. The bank should of took his money. There may be penalties for paying off so fast, and they should have been applied if that's the case - not just take the house away. Foreclosure should be for when people don't pay at all.

 

[waggy]

True but my bank has been good to me and actually does what they're meant to do, serve their clients.

The bank in this article tried to screw over that guy, well, they kinda won because now he has no house. I don't think I would of handled it the way he did, but I'm 100% with him on fighting it. Personally if I would have been him I would of gotten a good lawyer that hates banks, and maybe he would of got somewhere. The bank should of took his money. There may be penalties for paying off so fast, and they should have been applied if that's the case - not just take the house away. Foreclosure should be for when people don't pay at all.

the bank DID NOT TRY TO SCREW HIM OVER. in fact its the other way around.

he used the house ass callatral on a loan. he owes more then the house is worth. he is offering them less then he ows.

Why should the bank eat it? they are forclosing to sale the house ot recoup some of the BUSINESS LOAN.

this is nto because the idiot stoped paying on the mortgage.

 

[SunnyD]

How can the bank claim his personal residence as collateral (something from the story is missing here - did he actually use his home as collateral towards a business loan)?

There is way too much missing from the story to make a clean judgment here. If he had no problems paying the mortgage, as it doesn't seem like he was behind on his payments at all, and the claim wasn't towards a business loan where he pledged the house as collateral - that would mean the bank breached contract.

Now, as I said, there's too many gaps in the story to make this assumption.

 

[JEDIYoda]

that`s the american way...rofl...hahahhaa...good for him!!

 

[Onita]

So much failure in this thread.

The guy is a moron. Hopefully his ass gets tossed in jail.

 

[mugs]

True but my bank has been good to me and actually does what they're meant to do, serve their clients.

The bank in this article tried to screw over that guy, well, they kinda won because now he has no house. I don't think I would of handled it the way he did, but I'm 100% with him on fighting it. Personally if I would have been him I would of gotten a good lawyer that hates banks, and maybe he would of got somewhere. The bank should of took his money. There may be penalties for paying off so fast, and they should have been applied if that's the case - not just take the house away. Foreclosure should be for when people don't pay at all.

Have

Are you familiar with this word? It's often used after words like "would," "should" and "could" by people who don't sound like morons.

Read the thread, your understanding of this situation is entirely wrong.

 

[MJinZ]

You might want to read your mortgage contract again. It doesn't work that way. It's not in small print either it's in very large print.

Of course if you did own a house you wouldn't advocate "screws over the bank big time". If everyone did this you would never have gotten a mortgage, there would be no bank willing to loan money to the small guys.

Conversely, it's their greed that lets the small guys bite off more than you can chew.

IMO, anybody living month to month paying off mortgage is a fool .

Nobody "needs' a house all to themselves. You can buy apartments, condos etc. You can rent.

 

[Red Squirrel]

Have

Are you familiar with this word? It's often used after words like "would," "should" and "could" by people who don't sound like morons.

Read the thread, your understanding of this situation is entirely wrong.

wtf are you talking about? have? wtf? What does any of those words have anything to do with this.

 

[Capt Caveman]

wtf are you talking about? have? wtf? What does any of those words have anything to do with this.

/facepalm

Not only can you not comprehend the OP's article but you can't even comprehend mugs post trying to improve your grammar.

would of -> would have
should of -> should have
etc....

 

[Red Squirrel]

Oh now we are being grammar nazis. who fucking cares if I made a mistake. oh no, the sky is falling!

 

[masterxfob]

read this in the paper this morning.
http://www.cnn.com/2010/US/02/18/texas.plane.crash/index.html

 

[adairusmc]

I must not get it as I have been away for over a week celebrating Mardi Gras in parts of Louisiana ending with New Orleans for Tuesday fun.

Welcome to the internet then

http://www.urbandictionary.com/define.php?term=moran

 

[Slapstick]

Conversely, it's their greed that lets the small guys bite off more than you can chew.

IMO, anybody living month to month paying off mortgage is a fool .

Nobody "needs' a house all to themselves. You can buy apartments, condos etc. You can rent.

I agree with most of what you say but how is it the bank's fault people bite off more than they can chew? It's now that bank's job to protect people from themselves? If you bite off more than you can chew and lose it's a life lesson learned.

 

[LegendKiller]

that`s the american way...rofl...hahahhaa...good for him!!

The American Way is to be a deadbeat debtor and fuck investors over because you're stupid?

 

[LegendKiller]

True but my bank has been good to me and actually does what they're meant to do, serve their clients.

The bank in this article tried to screw over that guy, well, they kinda won because now he has no house. I don't think I would of handled it the way he did, but I'm 100% with him on fighting it. Personally if I would have been him I would of gotten a good lawyer that hates banks, and maybe he would of got somewhere. The bank should of took his money. There may be penalties for paying off so fast, and they should have been applied if that's the case - not just take the house away. Foreclosure should be for when people don't pay at all.

Are you 100% moron or just 50%? If I could draw you a stick figure of this I would, but I will try to do it step by step to try to help you. If that doesn't work I can draw stick in crayon and send it to you...


1. Guy wants to buy a business so he goes to the SBA but gets turned down.

2. Guy wants to still buy a business so he goes to his local community bank. The bank requires a down payment for the loan but the guy has no cash. Thus, the bank accepts a pledge of collateral, his equity in his house. Since the guy already owes the bank the mortgage (170K), he's merely pledging the 180K to the bank as collateral for the small business loan (SBA doesn't accept houses as collateral, which is why he gets approved here).

3. Bank goes and funds $300K from deposits and $50K from equity and/or debt. Now, usually a bank has to have "core capital", that is, equity that partially funds loans to protect depositors. Since banks are usually public (community ones are mostly privately funded, coops, or something such), they get their core capital from investors in the form of equity.

4. Guy defaults on his small business loan (350K). Now, the bank actually has more than $350K out to Guy. They have 350+170 = 520. To realize SOME recovery on the loan, bank demands guy sell his house for 350K so they can recover on it. Guy refuses.

5. Bank says "Fuck you deadbeat debtor Guy, we're going to foreclose". Thus, bank forecloses, guy tears down the house.

6. Now Bank writes down $520K in loans to $50K (land). Thus, Bank investors lose $470K. Core Capital goes down, fucking equity holders (Pension and 401k funds says "Fuck you deadbeat debtor guy, you just hurt our investment).

7. Because shithead deadbeat debtors such as Guy become prevelent in this country and because shithead people like you cheer him on, Bank goes bankrupt (merely because shithead deadbeat debtors CAN pay, but refuse to). This completely fucks 401k and Pension fund investors. Gee, thanks, assholes.

8. Since Bank was FDIC insured, the FDIC uses Depository Insurance Fund (DIF) proceeds to pay Bank's depositors off.

9. DIF fund runs out of money, FDIC goes and levies a forward DIF fund charge on other banks. Other banks then pay that money, reducing their profitability, fucking 401k and pension funds.

10. DIF fund runs out of money again, FDIC goes to US Treasury. US Treasury extends it money, fucking US taxpayers.



Now, all of that happens merely because anarchist assholes decide it's "cool" to rail against those evil, faceless, banks. Great guys, you turned this society into chaos. I know you think it's all neat to be angsty little emo teenage bitches, but this is the real world, with real lives, and real people. Grow the fuck up and pay your fucking bills.

 

[eits]

he should have done it intelligently... he should have just left the gas running and then leave a prepaid cell phone in the house and called it from a pay phone. the house would have blown up and he'd have no tracks leading back to him.