NPN Story: Mother Bails Out Deadbeat Son

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Dan DeppenBusiness Member
Erie, CO · Member since 2017 · 274 posts · 267 votes
7y

Thanks for sharing Andy, there are definately a lot of good lessons in there. I agree smaller, attentive, investors have an advantage over banks and larger institutions when it comes to dealing with these situations. 

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  • Dan DeppenBusiness Member
    Erie, CO · Member since 2017 · 274 posts · 267 votes
    7y

    Thanks for sharing Andy, there are definately a lot of good lessons in there. I agree smaller, attentive, investors have an advantage over banks and larger institutions when it comes to dealing with these situations. 

    1Reply
  • Patrick Sears
    Midlothian, VA · Member since 2013 · 130 posts · 17 votes
    7y

    Wow. That is totally ridiculous.  People are dirt.  Funny how none of these shenanigans are covered under Dodd-Frank...

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  • Tom PatelPro Member
    Real Estate Agent · Germantown, MD · Member since 2016 · 16 posts · 6 votes
    7y
    Thanks for sharing Andy. 
    1Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    7y

    @Andy Mirza

    Great case study. I have one in BK right now (3x filer) who makes $20k a year and completes the docs to say they will pay $400/month for X months then 3,000 a month.

    The judge approved it and my attorney was perplexed.

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  • Andy Mirza
    OP
    Lender · Ladera Ranch, CA · Member since 2014 · 1k+ posts · 1k+ votes
    7y
    Originally posted by @Patrick Sears:

    Wow. That is totally ridiculous.  People are dirt.  Funny how none of these shenanigans are covered under Dodd-Frank...

     Dodd-Frank helps borrowers, not lenders, unfortunately. Big banks pulled their own shenanigans by basically not having their stuff together and screwing a few people over. Now, we all have to deal with extra burdens ....

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  • Andy Mirza
    OP
    Lender · Ladera Ranch, CA · Member since 2014 · 1k+ posts · 1k+ votes
    7y
    Originally posted by @Chris Seveney:

    @Andy Mirza

    Great case study. I have one in BK right now (3x filer) who makes $20k a year and completes the docs to say they will pay $400/month for X months then 3,000 a month.

    The judge approved it and my attorney was perplexed.

     My attorney just shakes his head when these things happen. We have another where the borrower's schedule was $1000 per month for 6 months  followed by 54 payments of $1877. She made the 1st seven payments then stopped for 10 months. The judge allowed the 10 suspended payments, $2600 monthly payments with a $9000 payment at the end. The judge allowed it because the trustee didn't object....

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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    7y

    @Andy Mirza - But if you did the same thing as a lender to a borrower you would be fined and charged with predatory lending. 

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  • Patrick Sears
    Midlothian, VA · Member since 2013 · 130 posts · 17 votes
    7y
    Originally posted by @Andy Mirza:
    Originally posted by @Patrick Sears:

    Wow. That is totally ridiculous.  People are dirt.  Funny how none of these shenanigans are covered under Dodd-Frank...

     Dodd-Frank helps borrowers, not lenders, unfortunately. Big banks pulled their own shenanigans by basically not having their stuff together and screwing a few people over. Now, we all have to deal with extra burdens ....

    Yes, emphasis on FEW.  Unless we are talking about outright fraud by lenders (which was already illegal before 2008) I really have very little sympathy for the people who took out loans that were too big for them.  Whatever happened to personal responsibility?  And let's not forget that there were PLENTY of people who were able to buy much bigger personal homes, and many more rental properties than they would have been able to normally buy, and they hunkered down, kept it together and eventually came out way ahead when the market recovered.  

    You never hear those stories in the news because it doesn't fit the socialist narrative.

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