What is Digg?101 Comments
- fober, on 10/12/2007, -1/+128You guys realize the bank gets the house if he dies and none of his kin pay for it right?
- quomen, on 10/12/2007, -2/+96teh electricities will keep him youthful
- Mike89, on 10/27/2007, -0/+74Uhm, the bank were thinking "awesome, he pays us, then we get his house when he dies".
- Cwo655321, on 10/12/2007, -4/+69smart old d00d
- zlintux, on 10/12/2007, -5/+60A woman would have to be as stupid as the bank to marry him -- they'd be taking responsibility for his debt.
- geekchic, on 10/12/2007, -1/+49I applaud the medical advances which permit him to expect to live long enough to pay off that mortgage.
- crashflow, on 10/12/2007, -0/+45that's what you call an optimist.
- Ninjab3ar, on 10/12/2007, -9/+40OMGHAX
- brjndr, on 10/12/2007, -1/+30Not sure how it works in England, but in the US if he died and no one paid, the property would be auctioned, and bank gets what they are owed, and rest goes back to family.
- DurkaMcDurk, on 10/12/2007, -1/+28"... But with advances in modern science and my high level of income, I mean, it's not crazy to think I can't live to be 245, maybe 300."
-ricky bobby - signal15, on 10/12/2007, -1/+27If the banks stuck it to me for 102 years, I'd probably be out to stick it to them. :)
- spudnic, on 10/12/2007, -0/+22They gave him the mortgage...
Even if they hadn't it wouldn't be age discrimination. And pregnant women can buy alcohol.
What have you been smoking? - inactive, on 10/12/2007, -0/+18And the sub-prime lending crisis spreads to the UK
- treed, on 10/12/2007, -1/+19It's a liability, not an asset.
- Tankslap, on 10/12/2007, -0/+12Could be the fear of sleeping in the rain.
- dosterm, on 10/12/2007, -0/+9Say what now with the pregnant huh?
- slasherx, on 10/12/2007, -0/+9These 100somethings are pretty active! Getting mortgages, drivers licences, hookers...
- GetShorty, on 10/12/2007, -0/+9Why would the bank care? I'm sure he either picked up insurance that would pay for the mortgage if he died, or they'll just take the house if his heirs don't pay for it.
- powerbenny, on 10/12/2007, -0/+8This was all just about escaping his inheritance tax liabilities, or minimising them at least. Any debt he has at his death is offset against his estate left to his family. This was a tax vehicle, very cleverly employed by him, to try and give as much of his fortune to his family.
http://www.fool.co.uk/news/your-money/manage-your-finances/2007/03/27/how-to-re-mortgage-when-youre-102.aspx - Tankslap, on 10/12/2007, -0/+8@ unversed
This doesn't reflect on you personally, but you rented a house from an idiot. Even ***** landlords do background/credit checks with new tenants. I'm a landlord and a ***** so I know what I'm talking about. - troymcdavis, on 10/12/2007, -0/+7Asset for the bank. Technically, the house is the asset, not the debt.
- samnetwork, on 10/12/2007, -0/+6Was it the same guy that passed his drivers license at 101?
- kronix2, on 10/12/2007, -1/+6Establishments will refuse to serve pregnant women because of the damage which would be done to the foetus.
It sounds like you're supportive of pregnant women getting hammered and their foetuses developing an alcohol addiction inside the womb.
A better guess is that you're drunk, and pregnant, and 102 years old. - EddieOK, on 10/12/2007, -4/+9"I'm so sorry to hear that your father passed, how did he die?" "heart failure...yeah, from a mixture of viagra and cocaine while ***** twelve hookers in the Lincoln bedroom."
- dxmzan, on 10/12/2007, -0/+4@saibatsu
Do you not have the right to refuse service to any patrons in your establishment? - arizonagroove, on 10/12/2007, -0/+3@macesoul
The 102 year old man and mortgage lender in question are in the UK. The site you linked to as back up to your previous reply is for the Federal Trade Commission in the US and hence entirely irrelevant. - deanshultz, on 10/12/2007, -0/+3Read comments after the post. The title, while correct, is a bit misleading. This guy owned other rental properties - that is collateral. So, the bank knew what it was doing. Furthermore, he took the loan for purposes of reducing the impending Inheritance Tax on his children. In other words, he was planning to die. So, the old man knew what he was doing. And, in fact, a second comment on the story goes on to state the old man has since passed.
Everyone knew what was going on...except for a few diggers. - sachmanb, on 10/12/2007, -1/+4The bank was thinking: ok we'll take the house. After he dies, it goes to either the government or his family. Now it's property of the bank and if someone else wants it they pay the bank. The banks under no threat because it has the house and it's profitable to them if or not he pays them.
An unsecured loan would have truly been great :) - DivisibleByZero, on 10/12/2007, -0/+3@Mike89: It sounds like a good idea. As long as the cost to remove that old-guy smell is less than his mortgage payments.
- davids1, on 10/12/2007, -1/+4Hi I have no idea what a mortgage is but I think my parents have one so let me give my opinion woot.
- Tankslap, on 10/12/2007, -0/+3This one is on the level of giving a home loan to an arm-less construction worker. You have to think that the bank is confident that the property will increase in value over the short term though.
- Mightyuser, on 10/12/2007, -0/+3Simple, mortgage means if you don't pay (even if you die) the bank gets the property mortgaged.
- jmazzi, on 10/12/2007, -0/+3@kronix2
Imagine this.
Woman: "I'll take a martini please"
Bartender "Sorry, you are pregnant, I can't serve you"
Woman "I'm not pregnant you idiot!"
Bartender "OPPS" - Tankslap, on 10/12/2007, -0/+3You are right, it's far less interesting now that you mention it some other people have heard about it before me.
- zazzalicious, on 10/12/2007, -0/+2Errr.. this guy lives in the UK, so all the comments about US legislation are a little off target.
Also, I don't think he is going to get life insurance to cover the debt at the age of 102? Unless the premiums are ridiculously huge, like 50% of the debt per year?
Basically it is a 'Buy to Let' deal which has different rules in the UK (no idea about the US), the bank gets the interest on the loan and takes the risk of the equity being zero or less than zero.
Given that house prices in the UK are still on the rise and that the UK is not experiencing the problems that are currently plaguing the US housing market this is not a big deal for them.
http://www.thisismoney.co.uk/mortgages/house-prices/article.html?in_article_id=419087&in_page_id=57
Of course, there's always the possibility of a crash... - basket548, on 10/12/2007, -2/+4@rockforever
Why, pray tell, would a bank pay for upkeep on a house it isn't living in? And also, there would be no need to hire any more staff - this is a part of doing business for any loan-making company.
Oh, and in accounting terms, that's called an asset. A liability is when you owe money (yes, generally speaking). - babymitch, on 10/12/2007, -0/+2"Richard Stone, 75, from north London, owns 10 houses and has taken out a £120,000 mortgage. The retired maths teacher admits such a commitment at his age can be “quite stressful”. "
Ballin'. - saibatsu, on 10/12/2007, -0/+2@kronix2: In Massachusetts (which we all know has some ass-backwards moments. Really, a Lite Brite? c'mon guys...), as a bartender I cannot legally refuse service to a woman who is pregnant on the premise that she is pregnant. If she is drunk as all hell or the like, certainly, but if a pregnant woman walks into my bar and asks for a drink, I cannot refuse service based on that as it's considered discriminatory based on gender.
- Tanami, on 10/12/2007, -0/+2[edit: supposed to have been in reply to macesoul]
If you're going to go on such an impressive rant, it might be worth double-checking whether regulations set out by the Federal Trade Commission do indeed apply in East Sussex, England. I don't have any credentials as impressive as "former mortgage broker", but I'm fairly sure that they do not. - getliquified, on 10/12/2007, -0/+2the bank will win in the end
he pays the bank till he dies then the bank gets the house
bank = win - authors, on 10/12/2007, -0/+1On my mortgage if I die the house is paid for and it goes to my family. It does not go to the bank. If he has such insurance then it was a brilliant move on his part and the banks/insurance companies fault for not catching it. Though I am not sure they could deny such insurance in the USA. I am not sure in the UK.
- quick5pnt0cobra, on 10/12/2007, -0/+1What does the bank care? Not only do they get money from this guy while he's alive, but then they get the property when he dies. It's a win/win situation for them. Best of all is that after he dies the property will be worth more than it is now so its like the bank is getting money from this guy to hold property for them until it gains in value. It's win/win/win for them.
- Bancho, on 10/12/2007, -1/+2He's an optimist!
- andrew.bell, on 10/12/2007, -1/+2The mortgage is just amortized over 25 years. The term is probably like 5 years, it could be as low as 6 months.
- srodolff, on 10/12/2007, -0/+1This is not news.
Everyone who has a mortgage and dies leaves an unpaid balance.
The house is sold and the mortgage company is paid back.
The only risk is if the house drops in value, which in these times is rare. - VANOS, on 10/12/2007, -0/+1When he dies the probate court (I'll assume England has something like that) will likely order the house sold to pay off the mortgage lien on the property. I really don't see what the big deal is here. Bank is happy because to them it's no different than any other deal, they still have a protected security interest, old guy is happy since he can spend less on his housing and more on trips to Amsterdam (ahem), and if the house goes up in value, I guess the next of kin wouldn't mind either.
So what's the reason this got dugg so high? Slow news day? - rockforever, on 10/12/2007, -4/+5@fober
Yeah, in banking terms thats called a Liability. They have to sell it. Meaning they have to hire people to do so. Who do you think absorbs the cost of the house that the old man didn't pay. Hes essentially just paying rent on the thing. Yeah, when they sell it they make the money but if they auction it, they're prolly not gonna make a profit. Someone will prolly buy it for a cheaper price and then rent it out. - loganhid, on 10/12/2007, -0/+1lmao
- skulljar, on 10/12/2007, -0/+1Someone please explain to me what happens to the honorable timely paying homeowners when their mortgage company folds into bankruptcy? Does their loan get sold to another company? Is the loan waived? Does the mortgage company try to repossess the home?
- inactive, on 10/12/2007, -0/+1The bank is thinking that the property will appreciate and when he dies, either his estate will pay off the loan or the property will be defaulted and they will be able to sell it at a profit.
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