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Edited: Mar 19

Well, At least I still have my health

Isn't that what we say when other aspects of our lives get messed up? Yep, still got my health and my good looks.

That said, in my next life I want to be rich instead of handsome. I'm down a buttload in the last month with stocks. Frankly, I blame you guys for not listening to me and sticking with the Alzheimers dude.

Now look at your 401K.

Well, that's water under the bridge. I am currently facing a moral dilemma and who better to ask than the fiscally conservative, right wing tough guys on our board? The F your feelings crowd.

I bought a loan in December 2024. 2nd mortgage on a property near USC in LA. The guy hadn't made payments since 4/01/2009. That's 16 years without making a payment on his 2nd mortgage but he has faithfully paid the 1st mortgage.

The UPB (Unpaid Principal Balance) is $119,000.00 and the accrued interest for the last 16 years adds up to $186,112.00

So he owes me $305,000.00 and I paid $77,350 for the loan ( 65% of the UPB).

Much to my pleasant surprise the guy is selling the house and has it listed for $1,100,000.00. I can collect my full $305,000 and pocket $228,000 in profit. Deals like this don't come around too often. Naturally the borrower wants me to cut him a break and forgive some of my interest. He offered me $150,000 as a settlement. I'm inclined to waive maybe $50k but then I think of the bath I took this month with stocks. Who do I call to get a break on that L?

These are called zombie mortgages and are getting pub in the press. There is talk of legislation to make these loans uncollectible. I don't want to be on the news but I also need to capitalize on these opportunities.

Most of the time I have been giving discounts in these situations but right now I'm in a transitional moment.

What Would You Do?

Forgive the entire loan and wish him a merry christmas
Hit 'em Hard and get my money
Threaten Tariffs

16 comments

16 Comments

sceldorado

Mar 19

Sounds like he's trying to make some $ and screw you. So, nope. Pay up bitch.

BigBallss

Mar 20

Replying to

Yeah. The idea that you don’t pay for 16 years, a payment of $1200 per month, that’s $230,400 he saved. By the way, if he had made his payments the loan would be just about paid off.

Gary Ball

Mar 19

Do you know how much he paid for the property. It would seem that you both should share an equal profit.

Daystalker

Mar 19

Replying to

The deadbeat is not entitled to anything until after his debts are paid with interest. This isn't a guy who was behind for 6 months, this was a scam, F' him.

BigBallss

Mar 20

Replying to

He paid $600k in 2006, bought using 100% financing. No down payment.The good old subprime days. If it sells for $1.1 that will leave about $1,050 after selling costs, $400 to the first, my full $300k and he walks away with $300k. So you kinda nailed it, we each walk away with $300k. He is whining like a baby but I don’t think he should walk away with more money than me after not paying 16 years. He only made payments for three years and stopped in 2009. The people I bought the loan from offered him a settlement for $40,000 in 2020. He is gonna regret not taking that.

Zombie mortgages, a gold mine opportunity.

Edited

BigBallss

Mar 20

Replying to

It was a scam. These folks thought they could get away without paying the loan that allowed them to buy the house in the first place. Let the taxpayer or bank take the hit. And then walk away with a mint after selling the house? Yeah, not gonna happen.

Edited

Onikoroshi

Mar 19

Is the guy Persian?

hit em hard

no refunds

if he wanted to save money, he should have negotiated a lower price and he offered knowing the risk

I seriously doubt the liberals in the tax office are going to give him a break on unpaid taxes

Daystalker

Mar 19

Replying to

I had heard this, and I don't know if it is true or not, but in places outside the US, mainly middle east and Israel, the price of EVERYTHING is negotiable unless it is a house or a car, pretty much the opposite of here. Not sure that is true, but bargaining is supposedly expected on anything from a pair of socks to a bag of peanuts.

BigBallss

Mar 20

Replying to

Yeah, interesting culture. I have done deals with Arabs. They agree on a price , open escrow, lock up the property, and THEN start the real negotiations. “ oh the roof is beat up, drop the price $25000, oh the inspection shows the plumbing is worn, drop the price another $15,000.00”. Not fun.

BigBallss

Mar 20

Replying to

Yeah, the original lender went under in 2010, loan was sold three times since then but no one ever foreclosed. Until now. I recorded the foreclosure in January 2025. Before I foreclosed I sent the guy letters and called him. He ignored me until I started the foreclosure. He is gonna have to pay.

Daystalker

Mar 19

No, take what you bought and move on, he will too. Feelings don't pay the bills.

BigBallss

Mar 19

Replying to

Solid advice

August West

Mar 19

Obviously tariffs.

BigBallss

Mar 19

Replying to

Lol.