One way to use your tractor?

[2manyrocks]

I haven't read anything in this thread as being confrontational. If I'm coming across that way, then I apologize to all.

In this second story Toyota revelations may free jailed driver - Autos- msnbc.com Hoskins is quoted as saying he owes $600,000 on the business to the bank and then later he is quoted as saying he owes $160,000 on the house to the bank (total $760,000). I may be misreading the stories:confused2:, but I couldn't find where he said the house was also collateral for the business loan.

If the bank screwed up and failed to take the house as additional collateral for the business loan, then he may have a basis to complain that they should have taken the $170K offer instead of foreclosing. However, the $170K offer itself makes no sense if there are tax liens of record because you can't wipe out the tax liens with a voluntary sale unless you negotiate releases with the state and feds. The only way to involuntarily wipe out tax liens would be through a foreclosure sale.

If the bank's mortgage on the house also secures the business debt, then I could see reasons why the bank would prefer to foreclose.

To me, there are some missing details in these stories. How much are the tax liens? Did the bank's deed of trust on the house also secure the business debt? What are the lien priorities among the bank, the state and the feds? If these details were filled in, the story might take on a different slant.

I think the business sale is scheduled for next week and maybe some more details will come out then.

 

[JB4310]

Am I still missing something here? From the article it says he used the house for collateral on his business. His TOTAL debt was close to 500K, not 160K. Would you take 170K instead of the 500K you were owed? Again, what am I missing?

I didn't dissect this storey but from what I gather (could be wrong) the house only secured 160,000 of the total debt package. Like the other collateral was not enough for what he was refinancing, something like commercial building only worth $XXX, need another 160K worth of collateral. that's where the house filled the gap.

Only problem, I would think the loan would not break down the collateral like that and the borrower wouldn't have the flexibility to just decide to pay off part of the secured loan as far as the bank is concerned, the 2 parcels are one collateral until they get their money. As was mentioned if they sold his property and they got more than he owed then they would return the balance to him minus all the other costs involved.

He took it upon himself to try and rewrite the contract, looks like the bank was acting within their agreed upon terms, so I'm sure everyone agrees he doesn't have a legal leg to stand on.

I don't think it was an outrageous idea that he tried to get them to allow him to at least pay off that part of the loan that house had covered on the loan, so he wouldn't end up homeless. But looks like the bank is playing hardball.

It would be considered a positive initiative in most loan modification Negotiations I would think. If that where a residential loan there would probably be some kind of Govt sponsored advocacy group that would twist the banks arm till they accepted it. Being a commercial loan, there's no one that's gonna come to his rescue, except maybe the media.

JB.

 

[foggy1111]

I don't think it was an outrageous idea that he tried to get them to allow him to at least pay off that part of the loan that house had covered on the loan, so he wouldn't end up homeless. But looks like the bank is playing hardball.


So...the bank is playing hardball by looking after their shareholders interests?? ....well I hope so!! This guy pledged his home to get a loan....and now wants to dump on the bank to save his home??...and leave the bank with his toxic mess?? Wouldn't we all want that deal??

That ain't the way it works folks. The bank has every right to try to get whole again. I believe he should have considered the possibilities before pledging his home for the biz loan. He crossed way over the line......time for him to man up. (IMHO)

 

[MossRoad]

....
In this second story Toyota revelations may free jailed driver - Autos- msnbc.com

I think they changed the link... that one goes to a Toyota story.

....
To me, there are some missing details in these stories. How much are the tax liens? Did the bank's deed of trust on the house also secure the business debt? What are the lien priorities among the bank, the state and the feds? If these details were filled in, the story might take on a different slant.

I think the business sale is scheduled for next week and maybe some more details will come out then....

Yeah, I would like to see more details, too. Unfortunately, lots of reporters are limited in their story space by their editors... that, or they just don't get all the details.

 

[2manyrocks]

Home razer might take business next | cincinnati.com | Cincinnati.Com

Sorry about that.

There's another story today where he says he'll go to the Sheriff's sale, but probably won't bulldoze the business premises. http://www.wlwt.com/news/22702967/detail.html

What's confusing to me is the first link says the appraised value of the land and buildings is $600,500, and then the second link says the property is worth $1,000,000 with a minimum bid of $666,666.67. Maybe the second link includes inventory and equipment--it's just not specific enough to explain the $400,000 difference.

 

[2manyrocks]

Interesting story here that Sheriff said he could do with home as he pleased and some other details about sale of the business today. Terry's Carpet sold, not bulldozed | cincinnati.com | Cincinnati.Com

Compare the details to this story that appears to say he reached a deal with the bank and will still be on the premises. http://www.wlwt.com/news/22714918/detail.html

 

[JB4310]

I understand how he could still run the business, he just doesn't own the building now, he'll have to pay rent, the second storey said even what he owed IRS was settled.

What I don't get is why did he bulldoze the house, if just selling the commercial property would of covered all he owed?
He must be feeling pretty dumb right about now. Still some unanswered questions.

JB.

 

[2manyrocks]

According to this source, Ohio Foreclosure Process, 3 appraisers have to appraise the property and then there is a minimum bid requirement of 2/3 of the appraised value. So that explains the $666,666.67 bid. If the bank was only owed $600,000, then that would leave $66,666.67 to pay towards any other liens such as the IRS. So maybe that is now the bank and the IRS came to be paid off as reported in the story.

 

[dave1949]

Most 47 yr old guys work out their mid-life crisis with a Miata, not a Cat
Dave.

 

[bdeboer]

According to this source, Ohio Foreclosure Process, 3 appraisers have to appraise the property and then there is a minimum bid requirement of 2/3 of the appraised value. So that explains the $666,666.67 bid. If the bank was only owed $600,000, then that would leave $66,666.67 to pay towards any other liens such as the IRS. So maybe that is now the bank and the IRS came to be paid off as reported in the story.

In Ohio (probably everywhere) the government always gets their share first then the first mortagee, then the second, and etc. That is whatever is left after taxes goes to the first mortagee then any balance goes to the second mortagee or mechanics liens etc.