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I respectfully disagree, but I will admit that this may be a state level differance. I am unsure how it works outside of Texas. My answers regarding your points below...
In reality, the deed is held in trust. The trustee, at least in my case, is a third party title company that has no ownership relationship with my lender.
This is incorrect for my situation as well. My taxes are funded through escrow. If the taxes are not paid by the bank, for whatever reason, the tax authorities come after me, not the bank. It is always my responsibility to see that those taxes are paid. This is evidence also by the fact that Texas will very quickly foreclose on a property that is delinquent on property taxes.
Actually, I can speak very well to this. I had a fire recently (12/10) and not only did my mortgage company did not get any of the insurance distribution, they really didn't even care when I told them. The only thing they needed to know was that I would continue making my monthly payment.
Originally posted by Mystery_Lady
Originally posted by LoneGunMan
reply to post by MrXYZ
You seem like you may be one of the many ATS teens on this board, because you have not lived long enough to understand what a scam the banking system is.
It is called a fractional reserves system. If they have 10,000 dollars they can show electronically that they can loan another 90,000 that is not really there.
Only ten percent of the banks money is real.
Why in the world do you think they can take such losses when it comes to foreclosing?
Further education. When you buy a house with a mortgage and pay it off, you are actually paying 2 to 3 times if not more for your home. If a person bought a house for 100,000 and sold it 30 years later for 130,000, that person actually believes they made 30,000 on the house.
In the mean time the banks are laughing their way to the bank, because they profited at least 200,000 in interest alone. Yes folks, you pay more in interest than you do for the house itself. I looked at my loan, and it was true. That doesn't include all the costs of repairs the house needed over the years either.
That 30,000 you paid doesn't even begin to cover what you really paid for it.
Guess what, that 200,000 that wasn't there in the first place, was created out of thin air by a little word called interest.
You want the type of money the banks make, then you have to become the bank yourself, if your willing to take the chance. Yes, you can buy and house, and sell it with owner financing. That is where you become the bank, and collect all the interest.
The only other way to make money with houses is to buy way below the house's value. Either fix it up and sell, or wholesale the house. You have seen the show flip this house? Just don't try to buy a house and sell it at an inflated price that was inflated by someone or several people you bribed or paid off to lie about the house.
Do every thing honestly and legal in your area, and you will have no problems. That is if you have the guts to try. Tip, getting a mentor in real estate investing is a must.
Originally posted by pai mei
There is no alien invasion, meteorite, plague, WW3.
Originally posted by OZtracized
Wouldn't the bank sell his $350 000 home (for less of course for a quick sale), take the $160 000 he owes, plus the usual fees and charges then give him the rest? He would have been left with say $150 000 but a bulldozed house is only worth the land it once stood on which probably about equals the bank's share.
Seems like a silly move.