A recent Ohio man had enough from his bank and bulldozed his house before the foreclosure. Now, some may say that this is a controversial move. In fact, 1 out of 1 persons in a recent poll said that it was the wrong thing to do. Of course, that one person would be me. So what led up to such a horrible action?
Why bulldoze when you can short sale?
Well, it turns out that he fell out of luck with the IRS, and as a result he fell out of luck with his bank. I can certainly feel sympathy for the guy. According to the story at http://www.wlwt.com/news/22600154/detail.html, he had an offer that would have allowed him to pay his debt off in full. The bank decided that they could get more money at a foreclosure auction, and they decided to move forward with the foreclosure process. Certainly the greed here was a major factor.
So what do we learn from this story? Well, this guy is probably going to face some major jail time. I can’t speak of Ohio laws, but in Arizona, we sign a contract stating that we will do our best to maintain the property’s value. Last I checked, only in Michigan does scraping a house improve the property’s value.
The best thing to do if you’re facing a looming foreclosure is to avoid jail time. That means that you should seriously consider a short sale instead of bulldozing your house. Remember, you learned that lesson here.
Maybe they feel that its best to loose the house than letting it be owned to someone else. The place they used to call a home.
Toronto Mortgage Broker
That is just great! The banksters can steal trillions of dollars from the American people and not go to jail. They can destroy the economy and still collect a huge bonus. I am a single Mom; I lost my job of five years due to the economy. I can not imagine having to live on the street with my two kids. If I lose my home, that I never was late on a payment before I was laid off, That I have $125,000.00 dollars of equity in, I will be very upset. When you have lost everything, you have nothing to lose. I pray constantly that My Lord will make it so these greedy greedy crooks reap what they sow. I say no more foreclosures!
If me and my little ones are not, too big to fail, neither are they! May they burn in hell!!!!!!
Short sale? NO short sale! They are going to have to pay every dime of foreclosure costs. And the media is going to be watching as they drag this single Mom and my little ones out the door!.
Oh, I see,I can speak my mind as long as it is what you want to hear.
Hi Laura,
Sorry for the delay in approving your message. Maintaining this website can be a job in itself. Are you having similar problems with your lender?
Steve
There is some really bad reporting in this story, like the guy owed 160K on a 350K house. NOT exactly.
House is worth 300K, comm’l property worth appx 1.1 mil; total 1.4 mil value.
Banks holds mtg on both props of 1.1 mil total; Might be 160K and 950K, but the total is 1.1mil for release; cross colateralized.
The guy wants the Bank to accept 160K and release the house; CRAZY idea.
NOT paid State or Fed’l taxes in about 6 yrs. Owes 100K+ to Ohio and 150K+ to IRS.
Currently in Ch 7 Bankruptcy. He had destroyed property of the bankruptcy estate. Bad idea; the Feds don’t go for this.
Probably going to be insurance fraud charges after the Bank files a claim due to additional insured clause in policy. More criminal actions.
So how we doing so far? This guy is hardly someone to empathise with.
Yeah, it’s really amazing how the initial reporting is so off base from what really happened. All this guy did was screw over his town’s bank, and as a result, he’s really hurt all those others in his town. He didn’t owe $160k on his house, he only owed $160k to the first. He owed $1.1M to the second!
In Spain some of the regional governments are bull dozing illegal homes owned innocently by Brits who bought them in good faith. Now that is a real scandal!
I wonder what I would do in his situation. Where is America going to, we have people bulldozing homes and flying planes into IRS buildings? Is the American dream turning into a nightmare for some people?
In the UK, the government is active in preventing repossessions but you do need to be proactive yourself and take action at an early stage. You cannot sit back and hope.
.-= French Properties´s last blog ..Stone house and detached barn in the heart of the countryside., Limousin, 70000 euros =-.
You don’t have to accept it. Protest it. Appeal it. Don’t say the words. That’s the beauty of freedom of speech and having the ability to protest what you don’t agree with.
This story plays out the current short sale market.
Sellers want to sell and have no recourse from the bank and have minimal to no credit impact.
Banks choose when and how to sell their asset in order to protect the bottom line and stock holders.
Neither party really “cares” about the needs of the other party. Throw a couple of hungry agents in the middle, some attorneys, home inspectors, and appraisers, and this is a mess!
.-= Jacksonville Short Sales´s last blog ..Just Served Foreclosure Papers – What to do =-.
It is amazing to me what some people will do. I agree with you that this is not the right way to handle the situation. I am sure he is going to have some serious repercussions in doing this.
.-= FL Vacation Rentals´s last blog ..Where are the best beaches in Florida? =-.
So while they guy should not have demolished the house I can’t fell sorry for the bank since they didn’t accept the offer in an attempt to get more money
I am really against it. Also we must protest against this.
The same thing happened in Zimbabwe where Mugabe demolished housesand people were left homeless. I guess demolishing it yourself rather than let someone own it is better
Zimbabwe Houses For Sale
Amazaing how greedy banks can be. The owner didnt have the right to tear the house down, but what is a person supposed to do when the bank is being greedy.
If you are willing to buy a house, you will have to receive the credit loans. Furthermore, my brother always uses a collateral loan, which supposes to be really firm.
It’s very unfortunate that the lender didn’t accept the offer, especially if it was enough to pay off the loan. It sad, but there are a lot of people having late payments and they don’t know where to go or what to do. I believe we need to educate home-owners so that they understand that they do have other options rather than getting jail time on top of bad credit. It seems to me that someone should have called a news station in. Here in Austin, Texas Channel 7 News is knows as “Channel 7 On Your Side.” They hear the facts of the story, then broadcast all the issues after verifying. In this case bring a news station in may have pressued the bank to accept the offer.
.-= Sandy Riojas´s last blog ..119 San Antonio 3, Lockhart, TX 78644 : $350,000 | Austin Real Estate MLS # 8520032 =-.
I can’t believe this. I definitely think that this is a waste and criminal. What they don’t say in the story is that he has not only been behind on taxes for a couple of years as well as mortgage payments. You hit some bad luck, while he may not be the only one to blame. it’s certainly not the banks fault.
Althought this is a tragic state of affairs, I cannot help but chuckle at the ballsiness of this guy!
this story is hilarious, if you can’t keep you home just destroy ha ha! nice article, no more short sales LOL
.-= Arizona Homes For Sale´s last blog ..5 Reasons to Live in Phoenix, Arizona =-.
I am going to do my best to remember this and also I am going to remember where I got the advice. It sounds like a good way to stay out of jail.
This guy rocks. Look if hes going down…hes going down with a fight. Sucks for the jail time though.
Oh man!! ..This article gives the light in which we can observe the reality. I have taken a good point of thoughts from what you have shared. Learn a lesson out of it. I agreed, this is very possible if the bank is not considerate.
Great post. It certainly is better to make a quick sale than get yourself into trouble.
The poor guy must have felt that hopeless for him to even think of doing this. I’m sure his now regretting it since he’s now looking at jail time because of his drastic action.
Hmmm, interesting way to get what you want when it comes to property!
Thanks for the great blog. It is a bit extreme to bulldoze your house to get what you want dnt you think?lol but if it works why not