Election 2012

[Adak]

Originally Posted by Spexxvet

I heard a story from a credible source yesterday, a frame salesman. It's the flip-side of the welfare queen story.

An ophthalmologist in South Jersey makes over a million dollars a year. He owns a rental property, which has 4 units, at $2,000 per month. Three years ago, he refinanced, taking out a significant portion of the equity. Two years ago, he decided to stop paying his mortgage. He's going to pocket $8,000 a month during the foreclosure process, and then he'll walk away, screwing the bank, the taxpayers, the tenants, and who knows who else?

Asshole.

I'll tell you why he's doing it.

Three years ago, he refinanced, and was given a much higher interest rate than is currently available. Now, he wants to re-negotiate the interest rate (or refi), but the bank wants that higher interest, and won't budge. He can't refi, because now he doesn't have the equity in the property to do it.

So he's stuck, and he's VERY pissed at the bank - which has been given programs to help cases like this, but has chosen NOT to help him.

Yes, the bank will be screwed (but not terribly), the tenants will have no losses, and neither will the taxpayers. Property taxes must be caught up when the property reverts to the bank's ownership, or at least, not too far in arrears. Otherwise the property reverts to the local gov't which collects the property taxes.