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Frustrated Owner Bulldozes Home Ahead Of Foreclosure

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LegendKiller said:
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.
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this.

it was not that he had a mortgage and defaulted on it. People are thinking he had a mortgage of $350 on the house and owed another 160 when he defaulted on the loan. Then found a buyer for $170k wich would clear the loan. The bank wouldn't refuse that..they also couldn't.

when in reality its he owes the bank $520 (business loan with house as collateral) and the bank wants to do the house for $350. he would then only owe them 170. not to bad.

What he is trying to do is: he still owes $350+160. he wants to sale the house for $170 wich would mean he owes $340 to the bank still.

Why would the bank do that? it makes no sense.

Its not the bank who got screwed with him knocking the house down either.
 
Man will go to jail and WE pay for his upkeep there.

Bank gets nothing other than land I suppose.

Later, WE "will" bail out bank that just lost all the money.

Didn't read the details but sounds all fucked up to me.
 
Slapstick said:
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.
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Have you been living in the US for the last few years?

The banks lose more - and its ripple threatens the stability of the ENTIRE ECONOMY.

Banks prey on irresponsible idiots
Idiots bite off too much
Idiots lose their shit
Banks lose their shit
Tax payers - aka the REST OF US PAY FOR IT.
 
MJinZ said:
Have you been living in the US for the last few years?

The banks lose more - and its ripple threatens the stability of the ENTIRE ECONOMY.

Banks prey on irresponsible idiots
Idiots bite off too much
Idiots lose their shit
Banks lose their shit
Tax payers - aka the REST OF US PAY FOR IT.
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Exactly. Banks never lose, just taxpayers and individuals (eg hard working Americans just like yourself). Fuck the fractional reserve banking system.
 
AnonymouseUser said:
Exactly. Banks never lose, just taxpayers and individuals (eg hard working Americans just like yourself). Fuck the fractional reserve banking system.
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Banks lose all of the time. Plenty of banks are going out of business.


Railing against Fractional Reserve Banking is silly. It's the only way to bank. 100% reserve banking is ridiculous and has a massive amount of negative carry.
 
LegendKiller said:
Banks lose all of the time. Plenty of banks are going out of business.


Railing against Fractional Reserve Banking is silly. It's the only way to bank. 100% reserve banking is ridiculous and has a massive amount of negative carry.
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No, banks don't lose anything. Private profits, public losses is exactly how it works. When a bank fails another bank (or nowadays maybe the Fed) absorbs it's assets while taxpayers absorb the losses.
 
AnonymouseUser said:
No, banks don't lose anything. Private profits, public losses is exactly how it works. When a bank fails another bank (or nowadays maybe the Fed) absorbs it's assets while taxpayers absorb the losses.
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So all of those investors that own parts of the bank and just had their stock effectively go to zero didn't lose anything? 🙄
 
AnonymouseUser said:
No, banks don't lose anything. Private profits, public losses is exactly how it works. When a bank fails another bank (or nowadays maybe the Fed) absorbs it's assets while taxpayers absorb the losses.
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So what happens to the bank's equity? What happens to the bankers?

You and your ridiculous ideas about "lose" are stupid. The "bank" doesn't loose anything because the bank is nothing more than a corporation. The banks investors lose everything, except depositors who are insured.

In most cases, the DIF fund takes the loss. The DIF fund is funded by banks.

Get a clue.
 
Engineer said:
Yes, my 401k went to shit.

Private profits
Public losses....more ways than one.
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Lots of individuals have seen this, yet those that ran the economy into the ground get off scot-free and keep all of their money (huge profits made off the systematic destruction of the economy)....
 
LegendKiller said:
So your 401k didn't go up one penny when the banks did well?

Wow, you must either be a crappy investor or horribly unlucky.
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Did I say that? I was commenting on the fact that my 401k, which held bank stocks, did indeed lose when the banks failed. What are you babbling about?

I'm not defending the asshole who knocked down his house and I'm not defending the assholes at the banks that took sweetheart bailouts and then bonuses to boot. Those people (all of them) fucked us all.
 
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AnonymouseUser said:
Lots of individuals have seen this, yet those that ran the economy into the ground get off scot-free and keep all of their money (huge profits made off the systematic destruction of the economy)....
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So you think that would change once FRB is eliminated?

People have been screwing people like that since the dawn of man. Get over it.

If anything, it's gotten a lot better.
 
Engineer said:
Did I say that? I was commenting on the fact that my 401k, which held bank stocks, did indeed lose when the banks failed. What are you babbling about?

I'm not defending the asshole who knocked down his house and I'm not defending the assholes at the banks that took sweetheart bailouts and then bonuses to boot. Those people (all of them) fucked us all.
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Sorry about that. I misinterpreted your post.
 
Engineer said:
Did I say that? I was commenting on the fact that my 401k, which held bank stocks, did indeed lose when the banks failed. What are you babbling about?
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I think his point was that when the banks had high profits your bank stock went up so you benefited from it.
 
techs said:
"Well, to probably make banks think twice before they try to take someone's home, and if they are going to take it wrongly, the end result will be them tearing their house down like I did mine," Hoskins said.

No you moron. I am not one to ever side with the banks, but you are a moron. And I hope the bank sues you. I am sure somewhere in the mortgage agreement YOU SIGNED it prohibits you from demolishing the house because then you would be destroying the asset you have for the mortgage.
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The bank is trying to steal from him and you call him a moron? Maybe you should take a look in the mirror next time you want to call someone a name.
 
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