You can read the article here.
This man had a lien put on his house because of his failing business and the IRS and his bank were fighting over what was left of his assets, namely his home and a commercial property.
In the article it’s clear that he had never missed a payment on his home, had almost 50% of his mortgage paid off and had an offer from a potential buyer that would have covered his remaining mortgage debt and that the bank refused to accept it.
What is not clear in the article is if his home was legitimately used as collateral by the homeowner to secure his other business loans which would give the bank every right to take his house and to refuse the potential buyer’s offer. If the homeowners business debt exceeds the $160,000 left that he owed, which the potential buyer offered to pay, then the bank will want the whole house value, not just the remaining debt, so they can sell it and get back what’s owed to them from his other defaulted business loans.
The banks are responsible for much of the current economic pain we are all experiencing and I could spend hours railing against them for many things. In this instance however, due to a startling lack of information in this article, I am inclined to believe the author of this piece was writing to elicit an emotional response from the reader and ride the, “we hate the banks” tidal wave that everyone is feeling right now.
“Truth Through Omission” is most likely in effect in this article.
I appreciate his “message” to rally the public to his cause, but it may well be that the bank’s actions were correct. From this article, there is no way to be sure.
Categories: Housing Market