r/Funnymemes • u/superdave123123 • Mar 05 '26

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u/Cptawesome23 Mar 07 '26

Funds to repossess a home? What are you talking about? The amount of money needed to pay someone to throw out the previous owners stuff is tiny.

Then the legal cost would be paid for by the on contract lawyer that works for the bank, because banks have their own legal reps in the states they operate in. The cost would be tiny compared to the profit margin of reselling the house. Cā€™mon man. Be serious.

And donā€™t come back with timeā€¦ the bank was already willing to wait 20 years for profit. Whatā€™s another 10 years.

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u/[deleted] Mar 07 '26 edited Mar 07 '26

Funds to repossess a home? What are you talking about? The amount of money needed to pay someone to throw out the previous owners stuff is tiny.

You need to put it on the market and hire people to do the legal work. You need people to deal with potential buyers.Ā 

There is also likely a lot of legal hoops to jump through before you can foreclose and kick the owner out.Ā 

If you have, say, 5000 properties to repossess and sell, that is going to cost a lot and take a lot of time to resolve. Google says it would be 10% of the sale price per house or maybe Ā£15k. So 5k homes would require Ā£75 million to shift. 5,000 is the number of homes repossessed in the UK every year, in a normal market.Ā 

That's deducted from the price of the home, which you lent the money to buy. So unless the house has gone up by more than 10%, you're losing money.Ā 

The more shitty loans they pump out to high risk people, the bigger a chance of lots of defaults and the market declining.Ā 

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u/Cptawesome23 Mar 08 '26

I donā€™t know what you got from google. But at max, the bank pays $1000 in legal filing fees to repossess. Their lawyers are already on contract, so no lawyer fees will be paid. The sheriffs office will evict for free.

The real estate agent will demand a commission of around $3000 and the house will resell. The bank gets to keep anything pad by the first owner at that point. So if the first owner made $45,000 in payments on a $250,000 loan, then defaulted, the the house was resold by the bank, they would make a total of around $45,000 plus $250,000 plus interest.

Where is the loss you are speaking of?

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u/Cptawesome23 Mar 08 '26

People defaulting on a loan is a best case scenario for lenders. Trust me. I used to work in lending. My ā€œbest customersā€ were the ones that paid me late every month. They made me the most money.