Chris Tucker Home Foreclosed On

No problem.

 

True but on the same note on walking away, banks are collecting deficiencies from lesser people all day, including medical doctors. A bank is not going to write off $4m when they know that the debtor has good royalty income from films etc, those are the easiest to collect. All because it's a unsecured debt (IOU) doesn't mean the bank can't collect.

 

Again, you're the only person talking about the banks writing off the $4 million. I plainly stated that he was in the best position to negotiate and listed the reasons why, even citing the Tutell example of renegotiation.

The bank may have no choice. It's not only the potential that the loan may not be sufficiently secured to allow other recovery, Chris owes substantial taxes that can become superior tax liens and the government would own the house, or he may actually file for bankruptcy and avoid the debt completely. These issues alone, notwithstanding the actual mortgage, are enough to allow for renegotiation.

But, you're right, the bank could collect ...They could reclaim the home and sell it for the current value of $1.6 million. But, that's all they would be entitled to if they agreed to loan him $6 million with the home as the only collateral. They get a return of the collateral. They would suffer the loss of the decline. They would have then taken the risk of the property's devaluation, not Chris.

 

Thanks for the knowledge. To bad he didn't have the business sense not to invest in a home in the middle of no where in a brand new housing development.

 

I dunno, he's kinda hot now.

[YOUTUBE]fahwoS-lZ1Y[/YOUTUBE]

 

This is how it works. If you buy a house that is worth 4 million, then that comes with huge taxes. You have to continue to generate that 4 million over and over again to sustain the taxes on that house. That is the problem that some of these people don't understand.
Look up chamillionaire. another one.

 

What taxes are you talking about??
Property taxes??? That makes no sense.

 

All that talent for acting and he couldn't drum up a more financially saavy persona

 

swirlman and jordan are correct...the bank also has a liability in all of this when they allowed the house to be over inflated...over appraised...if you have a mortgage you do not own the house...you are basically renting from the bank...yes you have signed an agreement to make monthly payments...the biggest crisis in housing right now is the upsde down mortgage...the banks are shaking in their boots right now...there is no stigma attached to walking away from your house...alot of people are very attached to their homes...others not so much...my neighbor just let her second house go on a short sale...the foundation on the house is not stable and she is upside down on it...she is basically just handing it back to the bank...it is what it is...why would someone hang on to a 1.6 million dollar house that they still owe 4 million on...you have to play hardball with the bank...

 

yes, property taxes and insurance. fed taxes blah blah blah..

 

This is one of reason I like to say it is a good time for all of us who have money. Every thing is lower in florida. excellent time to own a house for a buyer assuming you are going to hold on to it for 30 to 50 years. excellent time to buy stocks and bonds!

 

Percentage wise property taxes are a minor part of your monthly obligation. No doubt he is manipulating getting out of being upside down in his mortgage.

There are no Federal taxes on owning a home. Just property taxes.

 

The property taxes and insurance in Florida are very high due to our love of no state tax. I'd be interested to see what he is paying. It is often not amazing to see someone one paying higher in insurance than the mortgage. That usually is what cost the most in the average Floridian's pay check.

 

Usually there is public record of property tax amounts. If you find out be sure and post......curious now.

 

my mortgage company pays my property taxes every year...it is built into my mortgage payment

 

yeah, just keep an eye on them mofos. I have heard horror stories about trusting the mortgage companies

 

oooooooooooooooooo lippy doesn't trust them as far as she can throw them...not until the day i own the house free and clear...

 

I've lived in Southern Florida, in a gated community, and I'd say that I can't imagine insurance EVER being more expensive than a mortgage, and I carried hurricane and flood insurance as well. In my case my mortgage payment was lower because I paid my own taxes. I've never had an escrow for taxes and insurance on any of the many homes I've, personally, and as investments. My perspective was always that I'd rather have the use of my money and any investment income from that money.

As for the idea of now being the best time to own homes, stocks or bonds, I'd beg to differ. Originally, home purchase was sought after as a fulfillment of the American dream. In the time since the 50's, when the U.S. ruled the world, home prices escalated as the economy rapidly improved. Somewhere along the way people got away from the idea of home ownership as a place to live during retirement and considered homes as investments. The idea stuck and more people flocked to own homes because they saw them as an investment that was second only to equities (meaning stocks).

That time is over and it may take a decade or more for home prices to recover to previous levels. The rise in prices is also significantly less and so their use as investment vehicles is questionable at best.

Cash has always been king that's truer now than at any time in the past. If you aren't thrilled with the idea of money market rates at your local bank or credit union, you can sink your cash into the equities market as you watch fluctuation swings in the Dow of 700 points on a week to week basis. You think bonds are safe? Hopefully not corporate bonds, which are obligations to pay (an IOU). Have you noticed how many formerly successful, even large corporations have gone bankrupt, including one of the largest corporations in the world, General Motors. I'm sure those bond holders thought they were safe too. If you believe in the U.S. economy, and that it'll ultimately recover, then the safest bet is T bills. But, again, the current interest rate is probably less than 1%.

 

one of the most tangible investments right now is gold...the purchase of gold bars specifically

 

Gold had been appreciating over the time of this economic crisis, but lately it has faltered as well, and prices have been fluctuating.