Betty The Restauranteur

[Victory Sabre]

Then he brought up the lapsed homeowners insurance. Betty said she and her husband “don’t care any more.”

So it sounds like we’re going to be foreclosing on Betty’s Family Restaurant unless Betty can somehow come up with over $9,000 to pay her past due property taxes.

Yeah, I'd say that your bank is going to be owning both within the next year or so.

That being said, I doubt your bank really wants said properties.

[Ghel]

That being said, I doubt your bank really wants said properties.

You're right about the restaurant. It's kind of a dump and there's too many restaurants in town already. The bank would probably have a hard time selling it if we foreclosed.

The house, however, would be a huge asset for the bank. It's on a 160-acre parcel out in the woods. It appears there's even a small quarry on the edge of the property. Of course, Betty's husband doesn't want to claim that as income, either. The house and land is worth over $200,000 for a $15,000 loan.

Which, as I'm sure you can see, is why Ted offered to increase the loan against the house to pay the past due property taxes on the restaurant.

[csquared]

It's on a 160-acre parcel out in the woods. It appears there's even a small quarry on the edge of the property. Of course, Betty's husband doesn't want to claim that as income, either. The house and land is worth over $200,000 for a $15,000 loan.

If you foreclose, I want to make an offer! Me and a million other people. How far up the line can you get me?

[Tama]

I wonder why she didn't just take the opportunity she got with that inheritance and coast from there. It would've been easy.

Aren't they gamblers though? I recall hearing you mention they could claim gambling winnings as income. That could explain where all the money is going...

[catcul]

Aren't they gamblers though? I recall hearing you mention they could claim gambling winnings as income. That could explain where all the money is going...

It looks like her life has finally come up craps.

[taxguykarl]

So it sounds like we’re going to be foreclosing on Betty’s Family Restaurant ....

From the sound of this saga it sounded like a question of when not whether
IIRC that was an SBA loan right? Sounds like a serious clusterf The house will be next and I have a sense that won't be long.

[Ghel]

IIRC that was an SBA loan right? Sounds like a serious clusterf The house will be next and I have a sense that won't be long.

Yeah, the restaurant loan is an SBA loan. So ifwhen we foreclose, if we have a loss, the SBA should pay us back a portion of that.

With the house, I suspect Betty's husband will continue to pay the loan with sales of timber or cows. Unless they decide they "don't care" about that, either.

[taxguykarl]

This nonsense took long enough to come to an end--20 years was it?

[Ghel]

It's been over 20 years since she started having trouble paying the loan. Before that there was 4 or 5 years where she did ok. That was before I started working at the bank.

[csquared]

After my last post, I got to thinking. They have 160 acres. If they sold off 30, they couple probably pay off everything.

[Ironclad Alibi]

That reminded me: 160 Acres by Marty Robbins

[otakuneko]

I'm amazed (not really) this is still going on. But to have an update right around the time I come back from the dead? Priceless.

I don't do popcorn, anyone for pretzels?

[drunkenwildmage]

I'm amazed (not really) this is still going on. But to have an update right around the time I come back from the dead? Priceless.

I don't do popcorn, anyone for pretzels?

How about Nachos?

[Nunavut Pants]

I think Betty will soon find out that "The restaurant nachos any mo'".

[Ghel]

Betty dropped off a payment plan document from the county this morning. It was in the night deposit, so I didn't get to talk to her about it when she dropped it off.

It's not the actual contract with the county, though. It's basically a worksheet. It says that Betty and her husband need to sign the contract in front of a notary and return it with a down payment towards the delinquent taxes - 1/5 of the past due amount, about $1700. I expect she'll have trouble getting that down payment together. The worksheet also says she'll need to pay this year's taxes plus any penalty by Dec. 31. That's another $1200. The next 4 years, she'll need to pay another 1/5 of the past due amount, plus interest and fees, plus that year's taxes, to keep current.

Ted is on vacation this week, so I plan on going over this with him when he gets back Monday. We're definitely going to want a copy of the signed and notarized contract and the receipt for the down payment. Then we'll want to call the county and verify everything.

And if that all goes smoothly, we'll have to check with the county at the end of the year to make sure Betty makes her annual payments. It's kind of a pain, but I suppose it's less paperwork and lawyer's fees than foreclosing.