Reposession story

[tim123]

Nice bit of selective quoting. To be fair to him, he also said this:



and this:



Don't forget, he went out and cleaned windows for a living, unlike some of the flipless tosspots out there...

DP was suggesting that the bank, not the buyer, were at fault here.

tim

[tim123]

If one of us paid ourselves huge amounts of money which our Ltd Co's didn't really own - like if the Ltd borrowed the money and then paid it to the director - and then the Ltd went under, unable to pay its debts... wouldn't we have to pay the money back by selling our houses and belongings? What I mean is, are all these bankers that have been getting huge bonuses for years, funded by fake money, going to be made to give any of it back... or is it just written off and they can keep it? What is the difference? Why are some of these schemes classed as fraud, and some as just normal banking practise?

They don't give it to themselves, the sharehlders vote on whether they should have it. Just ocasionally, the shareholders vote no.

tim

[thunderlizard]

The bank was never betting on the window cleaner being able to pay his mortgage. They were half expecting him not to be able to pay it: but that it wouldn't make any difference because the house would go up and up in value, so they could repossess any time they liked and still get their money back. Maybe they still can. Creditworthiness has little to do with it.

[Tensai]

.... so they could repossess any time they liked and still get their money back.

Generally a repossessed property is sold quickly and cheaply at auction which often leaves a remaining debt for the previous owner, particularly after adding in all the outstanding interest payments and legal fees.

Net result is the poor sod finds himself still in debt, and being chased by debt collection agencies who the bank sold the debt to at a discount. It's a common misconception that you can just hand in your keys and walk away unscathed.

[zara_backdog]

Generally a repossessed property is sold quickly and cheaply at auction which often leaves a remaining debt for the previous owner, particularly after adding in all the outstanding interest payments and legal fees.

Net result is the poor sod finds himself still in debt, and being chased by debt collection agencies who the bank sold the debt to at a discount. It's a common misconception that you can just hand in your keys and walk away unscathed.

Hum - property is not always sold quickly after a reposession, can be up to 12months - there is a lot of red tape to go through before ther BS can sell the property, or simply they hold on to it for a while - out-come is the poor sod founds him/herself in even more dept.

[ace00]

If one of us paid ourselves huge amounts of money which our Ltd Co's didn't really own - like if the Ltd borrowed the money and then paid it to the director - and then the Ltd went under, unable to pay its debts... wouldn't we have to pay the money back by selling our houses and belongings? .............

No. That's why it's called "Ltd."