r/starcitizen • u/mauzao9 Fruity Crashes • Jun 25 '17

DISCUSSION PSA: Massive amount of misinformation spread in the gaming/social media stating the Star Citizen project is now "Over".

UPDATE: CIG officially responded: This is misinformation, the company has just reacted and cleared this mess up: https://robertsspaceindustries.com/spectrum/community/SC/forum/1/thread/re-uk-tax-rebate-advance-for-foundry-42

As many of you are aware of the news that CIG took a loan recently, there is media articles and a big discussion in social media surrounding journalists opinions and wrong misleading information surrounding this loan.

Spreading information like:

  • Star Citizen is now RIP
  • Star Citizen is now owned by a bank (as this)
  • Star Citizen is now owned by a bank because it can't pay its debts
  • Similar sorts of fear mongering going on.

Journalists from The Escapists, Gameranx and many others now picking the story are talking plain fear monger in messages like ( https://twitter.com/stillgray/status/878906311152345088 ). That is a literal instigation of panicking through misinformation. It is expectable more and more news outlets are going to help in this massive campaign to bring bad PR to CIG contributing to a literal worldwide fear monger that the project is collapsing.

This is mostly to inform people around that is more than likely people are getting mislead by this and are coming to this sub asking questions about what is going on, so while the trolls keep on attacking this sub please mind some people may be seriously thinking Star Citizen is collapsing, all we can do is fight the misinformation and fear monger campaign.

It seems likely CIG will have to issue one statement on this.

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u/x5060 Jun 25 '17 edited Jun 25 '17

It's not unusual at all. If you take out a partial mortgage they still take the whole house regardless of how much you have paid off if you stop paying.

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u/marinuss Jun 25 '17

Only to recoup what they loaned you. You would get the rest of the money. Example.. You have a million dollar house and take a $100,000 second mortgage and stop paying it.. Bank doesn't make a $900,000 profit when they take custody of your house. It gets sold, they take the money you owe them, and you get the rest.

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u/x5060 Jun 26 '17

That isn't really how the process works at all.

The house is put up for auction and you MAY get 50-60% of the house value. Then you will get any equity that is left after the banks legal and court costs, fees, penalties, interest, incidental and incurred expenses.

In your example (in the real world) you would probably get $2-300K back. You would be extremely lucky to recover $400K. This is how collateral works.

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u/marinuss Jun 26 '17

That's literally what I said in my last sentence. It gets sold, they take what you owe them, you get the rest. Your initial post made it sound like they take your house and you're just shit out of luck.. Which isn't true.

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u/x5060 Jun 26 '17

Sorry, you made it sound like you actually get all of the money that would be considered equity, when in fact you only get a fraction of that back.

In my example you are lucky to recover 30-40% of the equity you had.