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ArtificialOP t1_j9tvo1z wrote

Reply to comment by eatmoremeatnow in Pimco-Owned Office Landlord Defaults on $1.7 Billion Mortgage by downboat

Thanks

Wouldn’t you just get sued and get your wages garnished?

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Exano t1_j9txijn wrote

Yeah cause your people. The trick they use is to be a corporation people.

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eatmoremeatnow t1_j9txkyj wrote

Nope.

When you take a loan out for a house you secure it against the house.

You go through a formal process with the bank, which can take years and you hand the keys back to the bank.

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Traditional_Button34 t1_j9ue55t wrote

Yup and your credit tanks for 7 years and you can't buy anything anyways. Turning your business into a corporation is the only way to avoid that. There's downfalls to that too...especially for businesses with only 1 guy working.

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eatmoremeatnow t1_j9ug52y wrote

Fannie and Mac allow for a new mortgage after 3 years if you have a 10% down payment.

After 7 years it all disappears like it never happened.

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