Lock if posted, Found it interesting and I'm pretty sure it could be a common problem with our team the way me move players around. http://jocksandstilettojill.com/201...martins-sacramento-home-has-been-repossessed/
Wow, so K-brick is trying to cheat the bank because he made a bad investment even though he has more than enough money to pay his debts? Too bad California is a no-recourse state so this thief might even get away with it.
He's chosen to forfeit the collateral on the loan. This isn't illegal, nor is it a moral issue. Any business would do the same.
He's not cheating anyone, he's giving them the house (ie. collateral). WHen the little old granny down the street can't pay her mortgage and the bank comes and takes her ancestral home, is that illegal? Its exactly the same thing here, except that the bank is the one getting the short end of the stick.
I think this being a business decision is exactly right. Banks look to screw people over all the time. We live in a capitalistic society, all of the high horses have been shot. Look at churches. Almost nothing more than glorified club houses.
I went through the exact same thing in the Sacramento area myself. We were transferred to another city for work, we put our house up for sale. No offers. After a year, and watching the value of our house drop and drop and drop, we decided all we could do was go for a short sale. A short sale means that's all the house is worth! My house dropped nearly 50% in value! I lost all my own equity (Kevin lost his $400,000 right off the top). And it was still short to the bank and second. The primary lender played fair and agreed to the short sale within a month. It's a write off for the bank. The second, US BANK THE SCHMUCKS, decided not to agree to the short sale, and instead held the sale hostage demanding we come up with thousands of dollars. Kevin's house went from $1.9 million to just over $900,000. That's a million dollar loss of which Kevin lost $400,000. In California, a purchase loan is a no recourse loan. Kevin could have walked away a long time ago, but instead his realtor did everything they could to get at least some money back to the bank. The bank however, illegally demanded a recourse of $500,000. ILLEGALLY. Regardless, the bank will eventually have to write off the loan amount minus whatever they can now get in a foreclosure sale. The bank will lose more money this way. Kevin, however, will have to pay income tax on what the bank writes off. There's hundreds of thousands of dollars again. Real Estate in California has been a disaster and banks can either follow the law, or they can try to extort money from people. US BANK IS FULL OF LIARS! DO NOT DO BUSINESS WITH US BANK!
Look the house is worth a fraction of what he paid for it, and what he still owes the bank on it. He's forced with the decision to either- -try and sell it for pennies on the dollar and still eat the difference to the bank that he owes(which could be substantial). -Keep on paying for the home that he no longer lives at, can't rent out and break even, and just hope that the value one day recovers. In Sacramento, with that house, is not likely. More than half of the homes sold last year in Sacramento where short sell homes fyi. -Apply for a Short Sell, which he should get given the current value is much lower now. (However the bank knows his income, gambled, and thought he might just bite the bullet on it eventually. Now the bank is stuck with the house to sell.) and if the bank does not accept the short sell- -allow the bank to sieze the house on a foreclosure. It will damage your credit for at least 7 years, but hey... what bank, car dealer, etc. wont give a loan to a professional NBA player... Kevin did the right thing for himself to just allow the home to foreclose. Millions of US citizens (mostly in California) are doing the exact same thing because it makes sense.
This was posted a while ago. Cali has bad laws and our depression /recession can be tracked back to policies like it.
