Man Bulldozes Home

Started by Whitlock, February 23, 2010, 10:52:22 PM

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Whitlock

February 23, 2010, 10:52:22 PM
Some crazy things going on and I don't think we have seen the end of it :-\

I wonder if there is anything I could salvage from it heh

http://www.wlwt.com/news/22600154/detail.html
Make Peace With Your Past So It Won't Screw Up The Present

glenn kangiser

#1
February 23, 2010, 10:57:49 PM
I've been watching that one for a couple days. I guess the bank won't make more off of it than they would working things out now, eh?
"Always work from the general to the specific." J. Raabe

Glenn's Underground Cabin  http://countryplans.com/smf/index.php?topic=151.0

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Pox Eclipse

#2
February 24, 2010, 08:16:32 AM
Quote from: bayview on February 24, 2010, 07:27:19 AM

   He is still liable when the bank sells the property.  The bank will "1099" him as income for the difference between the sales price and the amount of the loan. . .


Probably not.  The Mortgage Forgiveness Debt Relief Act of 2007 allows taxpayers to exclude the forgiven debt as income.

peternap

#3
February 24, 2010, 08:45:05 AM
I can't say I blame him but it wasn't the smartest thing IMO.

This is getting more popular. I read about one locally yesterday where the man burned his house down.
If you pay attention to the things happening these days, it gives a lot of weigt to Muldoons theory. People are fed up, desperate and the economy isn't going to get better anytime soon.
These here is God's finest scupturings! And there ain't no laws for the brave ones! And there ain't no asylums for the crazy ones! And there ain't no churches, except for this right here!

pagan

#4
February 24, 2010, 08:55:18 AM
If he owed $160,000 and had an offer for $170,000, I don't see how the bank could refuse the sale as they'd get the full $160,000 that was his liability. It must have something to do with the IRS and his commercial property. There's more to this than him simply failing to pay his mortgage. Something tells me he's going to get prosecuted to set an example for us all.

People are very pissed. They see banks getting billions from the government and then giving themselves million dollar bonuses for doing such a good job managing the banks finances. The government buys millions of risky mortgages from the banks so the banks can clear this obviously bad debt from their books enhancing their bottom lines, and then the bankers start doing the same thing all over again. Now people are beginning to destroy property that bankers feel is the rightful property of the banks. They're going to get the government to step in again and prosecute these people to protect the banks interests.

glenn kangiser

#5
February 24, 2010, 11:28:49 AM
I think it was greed and profit for the bank.  He chose not to let them have a product to profit off of at his expense.

Been posted here before and a bit different situation but for those who haven't seen it....

Marvin and the Killdozer    http://www.youtube.com/watch?v=PZbG9i1oGPA
"Always work from the general to the specific." J. Raabe

Glenn's Underground Cabin  http://countryplans.com/smf/index.php?topic=151.0

Please put your area in your sig line so we can assist with location specific answers.

poppy

#6
February 24, 2010, 01:14:25 PM
This guy is "in my back yard" and I was thinking of posting, but there is so much info. left out that I'm not sure what's going on.

He made the front page of today's paper with the subtitle "Terry's carpet owner owes $600K on store property."  It's to the same bank.  His house was collateral for the business.

He has been in the carpet business for 18 years (self-employed for 30 years), yet got in debt to the point where the IRS is involved.  A sheriff's sale is scheduled for March 2 and the business property is appraised for about what he owes.

He has filed Chapter 7, but it's looking like he is going to loose everything.

pagan

#7
February 24, 2010, 01:50:17 PM
poppy,

That explains why the bank would not allow him to sell his house for $170,000. He actually owes them $760,000. I still think he's going to be in a world of legal hurt over this little mess he's gotten himself into.

Pox Eclipse

#8
February 24, 2010, 04:14:11 PM
Quote from: bayview on February 24, 2010, 01:24:21 PM

The debt is secured by the home . . . He no longer has a home.  More than likely he will not qualify for the mortgage forgiveness. 



The mortgage is still secured by the real property, whether the house is standing or not.

pagan

#9
February 24, 2010, 04:28:39 PM
Pox,

We have a land only loan, as the bank affixed no real value to the structure. We were actually told by the bank manager that we could do whatever we wanted to the building, we just couldn't do anything that would adversely impact the value of the raw land, like cut all of the trees down. If we had bought a complete house and that house had substantial value, destroying the house would cause the property value to fall. His house was appraised at over $300,000, which is probably what the bank valued it at when he used it as collateral for his business. I doubt the bank will be able to get $300,000 for a vacant lot. It looks to me like he destroyed the banks ability to collect on what he owed.

StinkerBell

#10
February 24, 2010, 04:43:11 PM
It would appear that this guy did not incorporate his business and had possibly a DBA.

If one does not incorporate it leaves so many doors open. If someone slipped and fell at his work and he was found grossly negligent they could and he was not incorporated they could take everything he owns, houses, cars, savings........

[noidea'

glenn kangiser

#11
February 24, 2010, 10:47:46 PM
I haven't seen a corporation being that much benefit as you generally get forced to sign a personal guarantee in things that matter anyway - then there is all of the stinking bookkeeping and meetings etc.  No offense, Stinky. ::)
"Always work from the general to the specific." J. Raabe

Glenn's Underground Cabin  http://countryplans.com/smf/index.php?topic=151.0

Please put your area in your sig line so we can assist with location specific answers.

pagan

#12
February 25, 2010, 07:47:49 AM
In the end some lawyers are going to make serious cash off this case, unless the bank chooses to walk away. Perhaps that's what this guy is hoping.

RainDog

#13
February 25, 2010, 09:04:55 AM
Quote from: glenn kangiser on February 24, 2010, 10:47:46 PM
I haven't seen a corporation being that much benefit as you generally get forced to sign a personal guarantee in things that matter anyway - then there is all of the stinking bookkeeping and meetings etc.  No offense, Stinky. ::)

Y'all may just make an IRS hate monger of me yet.

Or rather, THEY may:

IRS audit initiatives against S corporations

http://www.btkcpa.com/newsletters/s-corporations-audit-triggers/
NE OK

glenn kangiser

#14
February 25, 2010, 10:40:33 AM
... and you are such a loving fellow..... tsk..tsk...tsk.... [waiting]  ;)
"Always work from the general to the specific." J. Raabe

Glenn's Underground Cabin  http://countryplans.com/smf/index.php?topic=151.0

Please put your area in your sig line so we can assist with location specific answers.

RainDog

#15
February 25, 2010, 04:01:09 PM
Quote from: glenn kangiser on February 25, 2010, 10:40:33 AM
... and you are such a loving fellow..... tsk..tsk...tsk.... [waiting]  ;)

See right through me, huh?

I'll try to remember to keep the curtains pulled tighter over my misanthropic and malevolent nature in the future.  ;)

But, as GW Bush said: "You can fool some of the people all the time, and those are the ones you want to concentrate on."

NE OK

glenn kangiser

#16
February 25, 2010, 11:49:51 PM
He worked hard on it. 

..but did he say it that way too.. [noidea'

http://www.youtube.com/watch?v=eKgPY1adc0A
"Always work from the general to the specific." J. Raabe

Glenn's Underground Cabin  http://countryplans.com/smf/index.php?topic=151.0

Please put your area in your sig line so we can assist with location specific answers.

eddiescabin

#17
February 26, 2010, 04:26:34 AM
Glenn is correct on this one.  Banks demand personal guarantees on SBA loans etc.  Also, this guy put the house up as collateral, not like his biz failed and they came for his personal res. BUT, somewhat related...In Ca. if a home is lost to foreclosure etc. and there exists ONLY a purchase money mortgage (no refi- no 2nd mtg's) the buyer is NOT liable for the difference in original mtg amounts and the bank's recovery amount.  This is also true is simple sales of RE in Ca.  The guy risked "it all" in hopes of future returns and just crapped out.

poppy

#18
March 03, 2010, 12:42:23 PM
Well the guy made a deal with the bank who bought the comercial property for $666,666.67  (the bank is double the beast.  :o)

He can still operate his business and even buy back the property and rebuild his house.

He has agreed to not have any heavy equipment on the site.  ::)

There was no mention of a resolution with the IRS.

http://news.cincinnati.com/apps/pbcs.dll/article?AID=/AB/20100302/NEWS01/303020038/
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