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Chamillionaire Loses Houston Home to Foreclosure

Discussion in 'BBS Hangout' started by RoxSqaud, Jun 16, 2010.

  1. RoxSqaud

    RoxSqaud Member

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    .....
     
  2. bnb

    bnb Contributing Member

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    If the house is worth less than the mortgage, is he on the hook for the difference?
     
  3. REEKO_HTOWN

    REEKO_HTOWN I'm Rich Biiiiaaatch!

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    Nope.
     
  4. da1

    da1 Member

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    A lot of people are doing this
     
  5. RocketMan Tex

    RocketMan Tex Contributing Member

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    Yea they are. I also remember lots of Houstonians doing it during the oil bust in the early 80s.
     
  6. bnb

    bnb Contributing Member

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    I'd sacrifice my credit rating for a few hundred thousand dollars.
     
  7. CrazyDave

    CrazyDave Contributing Member

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    Actually, some people are finding that they are. Don't know why some are and some aren't, but I've heard of people doing this only to find they're on the hook later.

    I know a lot of people are doing this, some forced, many not, but really... a guy with this much money doing it because "he's never there" and "it seemed like a bad business investment" just really doesn't sit right with me.

    Can find plenty of other homes? Better bring cash.

    What an Entrepreneurial and Thought Leading attitude. At least he still has all his cars and businesses... I'm sure the bank that lent him the money loves hearing that.
     
  8. REEKO_HTOWN

    REEKO_HTOWN I'm Rich Biiiiaaatch!

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    It happens all the time. Is it fair that his property value is less than his Mortgage?

    People are getting hit hard buy low home values and It's safe to say the bank made a ton of money on the interest of the loan so they will be just fine.

    If it was you in that position you'd do the same thing. I know I would.
     
  9. MadMax

    MadMax Contributing Member

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    of course he is....

    he owes the money on the note that's secured by the house.

    if he owes $10 on the note

    and the bank forecloses and finds that it can't get $10 selling the house (after attorneys' fees and expenses, as well)

    then he's liable for the deficiency.


    the home simply secures the bank's payment on the note...but if the collateral comes up short, it's not like the debtor walks away from what he still owes.
     
  10. SamFisher

    SamFisher Contributing Member

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    Good call to exit the homeownership game when the chips were down.

    I guess he's now just rentin' dirty.
     
  11. JuanValdez

    JuanValdez Contributing Member

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    His credit rating will take a hit, but somehow I expect people will continue to lend him money regardless.
     
  12. REEKO_HTOWN

    REEKO_HTOWN I'm Rich Biiiiaaatch!

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    I'm sure HIS lawyers figured it out and protected his assets before making this decision. Rappers have Attorneys too.
     
  13. bnb

    bnb Contributing Member

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    That's how it is where I live max. But I recall some states (California?) have special rules over primary residences....

    Which creates a weird motivation to rack up the debt on the home and walk if the value declines.
     
  14. MadMax

    MadMax Contributing Member

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    they may agree not to pursue him for the deficiency.

    but technically, he owes the money. still shows up on a credit report, if that matters to him.

    of course, if he owes that much to the IRS, then it probably is wrecked anyway.
     
  15. MadMax

    MadMax Contributing Member

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    yeah...i can't speak for other states...just Texas.
     
  16. REEKO_HTOWN

    REEKO_HTOWN I'm Rich Biiiiaaatch!

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    so what you're saying is he's off the hook? :cool:
     
  17. juicystream

    juicystream Contributing Member

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    Generally not. The bank typically forgives the debt, and you are possibly subject to tax on that forgiveness. The thing with the banks is if it worth the hassle to try to get the money, and the answer is usually no.
     
  18. MadMax

    MadMax Contributing Member

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    because you're guessing they may not pursue him for the deficiency??

    i'm saying that you posted rather definitively that he wouldn't be responsible for anything else.....the default setting is you're wrong.

    if there's something else to this i'm unaware of, good for him.

    but when you said, nope, to the question of "If the house is worth less than the mortgage, is he on the hook for the difference?", that's definitively wrong. He still OWES the money and it's still on his credit report.
     
  19. MadMax

    MadMax Contributing Member

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    the answer is usually no when they think the person they would sue to get the deficiency from has no assets to pursue....which is typically the case with the average foreclosure

    i don't know if that's the case with chamillionaire or not....but most of the banks i've represented would say, "hell, yes, we want the judgment...because a guy like that is likely to have assets we can grab at some point, even if he doesn't right now."
     
  20. Angkor Wat

    Angkor Wat Member

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    they see me buyin'
    they hatin'
    Investigation
    So now they got me rentin' dirty
     
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