Betty The Restauranteur

[sstabeler]

Just a never-ending circle of suck. Maybe it's time for a foreclosure while there's still something to collect...

while you have a point, the bank can't actually foreclose at the moment, since Betty is actually in compliance with the loan agreement for once. ( and, for that matter, it IS actually a good thing that the bank can't foreclose arbitrarily. Think about it- a bank could- if they could foreclose while someone was actually in compliance with the loan- put all sorts of requirements in place. ( while I doubt they would get too obnoxious about it, you can imagine someone like GoodHair bringing in a requirement that you have a current account with the bank (A current account is your basic checking account- debit card, chequebook, you get the idea) and actually use it.)

[eltf177]

Understand, what I meant was foreclose when the insurance goes unpaid. And given Betty's track record you KNOW it will eventually go unpaid again and get cancelled. At this point Betty and her husband deserve no more chances, end this farce now...

[Ghel]

Despite what most media sources suggest, banks don't actually like to foreclose, so we'll work with a customer as much as possible before we go that route. And, as sstabeler mentioned, we have to follow the law for foreclosures. We have to send a certified letter stating why the customer isn't keeping up with the terms of their loan, what they can do to fix it, and how long they have (usually 30 days).

Foreclosure is expensive, so it usually pays for the bank to go through a lot of collection efforts before foreclosing. Also, in Minnesota, when the bank forecloses on someone's home, the borrower has a 6 month redemption period to (effectively) buy back their house. A lot of foreclosed houses get trashed during that redemption period.

Betty's restaurant isn't worth anything. The bank wouldn't get much if we had to foreclose and try to sell the building. The house isn't worth much more. In fact, the land is worth more than the house. But if we had to foreclose and the house was trashed, we would have to pay to demolish the house before we could sell it.

[eltf177]

So it sounds like your bank loses no matter how this plays out...

[otakuneko]

Right, banks don't really want to own real estate without someone already locked in to buy it from them (ie, the person getting the mortgage).

[eltf177]

Pity you can't pin this on Goodhair...

[Seshat]

This is why if you're having trouble paying loans (and can prove that you're in genuine need, not just being greedy and/or stupid), many lenders will do their best to work with you.

Yes, their first offers will be highball offers; and yes, some of their reps have no idea what real hardship is and will make impossible demands. But if you are persistent and polite, you'll eventually get to a rep who can look at your situation and do the best they possibly can.

[greek_jester]

This is why if you're having trouble paying loans (and can prove that you're in genuine need, not just being greedy and/or stupid), many lenders will do their best to work with you.

Quoted for truth. My mum was a single parent during the Maggie Thatcher years, and the state thought £22 a week was plenty for a mother, 2 children and a dog in a 3 bedroom semi to pay for food, the bills, clothing and the mortgage despite the fact that the sperm donor wasn't paying the agreed-upon maintenance.

Mum was about £3,000 in arrears on the mortgage when the news came through that Halifax were becoming a limited company, as opposed to a building society. As such anyone with an account (even an empty account) would receive shares (yes, this dates me horribly).

The bank manager, who was on the point of starting foreclosure proceedings, was willing to wait for mum to receive then sell the shares to get the money. Once that had been done me and my sister were old enough to be left on our own for a few hours after school so mum was able to get a job which mostly covered food and bills. Mum repaid that generosity by sticking with that bank when re-mortgaging for a better deal until she had to retire for health reasons. She then paid it all off in one fell swoop when she sold the house and retired to the seaside.

[eltf177]

Has Betty been behaving herself?

[Ghel]

For the most part, yes. She is occasionally overdrawn, but she has been paying her loans without issues.

[taxguykarl]

Let's see how long that lasts...

[eltf177]

Let's see how long that lasts...

I have to go with this, I hope her employees keep getting paid in full and on time...

[Tama]

I wonder what happened. Maybe she wised up? Haha no.

As I recall she behaved for a little while before then started right back up again.

[Ghel]

I expect she's still got some of the inheritance money socked away somewhere - maybe at the credit union, maybe in her mattress. When that money runs out, she'll certainly be in the same situation as before.

[taxguykarl]

...I hope her employees keep getting paid in full and on time...

and not out of the till and the withheld tax actually remitted to the revenue departments.
Wising up is nothing I'd bet the mortgage money on, Tama.