Friday, February 19, 2010

Man Bulldozes Foreclosed Home

An Ohio man lost his home to foreclosure and bulldozed his house rather than let the bank take it back. It seems he was sued and the IRS placed a lien on his home. The bank claimed the home as collateral.

From what I can tell, it sounds like the guy got a loan from the bank and built the house himself. He owed $160,000 on it. The bank started foreclosure. The home was supposedly worth $350,000 and the owner had an offer to buy it for $170,000. The bank rejected this, saying they could get more for it at auction. So the man decided he would return the property to the way it was when the bank gave him the loan - just an empty lot - and he bulldozed the house.

As much as I hate to say it, I have to agree with the owner here. The bank was just plain greedy. He had an offer that would have paid off the bank completely, but the bank rejected it because they thought they could get more money. That was just stupid.Whoever made that decision at the bank should be fired.

Now there is probably more to this story. For example, why did the IRS put a lien on his house and how much did he owe them? It might be that the $170,000 was not enough to pay off the IRS and the bank, which is why the bank rejected it. As you know, IRS liens get paid off before any other liens, so maybe the bank would have lost money with that offer. If that's the case, I would have to side with the bank. But, lacking any info to the contrary, I think the bank screwed up.


Fort Collins CO Homes said...

Wow pretty crazy. I have actually read some other stories like this. I am guessing you probably heard about the guy who flew his plane into the IRS building in Austin because of the money they were demanding from him. Crazy times...

Derek Carter said...

We had a guy take out all the updates to his house when he got foreclosed on. People are emotional when they lose a home. The bad thing is the neighbor bought the home at auction even though the neighbor was told that this buddy's friends were going to buy the home so he could stay. That is one mean neighbor.

Pearl Marie Vergeire said...

People facing foreclosure are in a high level of stress. Foreclosure has a devastating impact to people affected by it. This guy is no exception; he couldn't probably cope with the idea of losing his home to a bank and the outcome was the crazy act of bulldozing it.

Investing with the Stars said...

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Shaun said...

I think you meant to leave this comment on my post about Kiyosaki but anyway.. I think Kiyosaki is good for motivation stories. But for the nuts of bolts of investing, he provides almost no details. And that's fine if you approach him that way. I just feel there is only so much you can do from a motivational standpoint and I feel he is starting to repeat himself and he seems to be jumping on whatever the latest financial bandwagon is.

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