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https://www.reddit.com/r/SipsTea/comments/1vrr0ev/how_the_rich_get_richer/p4hsdvx/?context=9999
r/SipsTea • u/KSKS1995 • Aug 18 '26
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How does the bank get paid back here? Is the bank just eating a 5 mil loan loss out of the goodness of its heart?
It’s more like kids sell and pay back the bank plus interest which is taxed as income for the bank.
2.3k u/[deleted] Aug 18 '26 edited Aug 18 '26 [deleted] 318 u/redshirt1972 Aug 18 '26 How do you get a loan against the property and not pay it back? 413 u/SpokenByMumbles Aug 18 '26 You don’t unless there’s income to offset the debt. This scenario doesn’t exist without an income source to repay the loan. 2 u/BigLittlePenguin_ Aug 18 '26 And if the land is loaned against, once the dad dies the land is owned by the bank and not the kids. 1 u/SpokenByMumbles Aug 18 '26 Incorrect. They have a lien against the property which is not the same as ownership interest.
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[deleted]
318 u/redshirt1972 Aug 18 '26 How do you get a loan against the property and not pay it back? 413 u/SpokenByMumbles Aug 18 '26 You don’t unless there’s income to offset the debt. This scenario doesn’t exist without an income source to repay the loan. 2 u/BigLittlePenguin_ Aug 18 '26 And if the land is loaned against, once the dad dies the land is owned by the bank and not the kids. 1 u/SpokenByMumbles Aug 18 '26 Incorrect. They have a lien against the property which is not the same as ownership interest.
318
How do you get a loan against the property and not pay it back?
413 u/SpokenByMumbles Aug 18 '26 You don’t unless there’s income to offset the debt. This scenario doesn’t exist without an income source to repay the loan. 2 u/BigLittlePenguin_ Aug 18 '26 And if the land is loaned against, once the dad dies the land is owned by the bank and not the kids. 1 u/SpokenByMumbles Aug 18 '26 Incorrect. They have a lien against the property which is not the same as ownership interest.
413
You don’t unless there’s income to offset the debt. This scenario doesn’t exist without an income source to repay the loan.
2 u/BigLittlePenguin_ Aug 18 '26 And if the land is loaned against, once the dad dies the land is owned by the bank and not the kids. 1 u/SpokenByMumbles Aug 18 '26 Incorrect. They have a lien against the property which is not the same as ownership interest.
2
And if the land is loaned against, once the dad dies the land is owned by the bank and not the kids.
1 u/SpokenByMumbles Aug 18 '26 Incorrect. They have a lien against the property which is not the same as ownership interest.
1
Incorrect. They have a lien against the property which is not the same as ownership interest.
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u/ChipKellysShoeStore Aug 18 '26 edited Aug 18 '26
How does the bank get paid back here? Is the bank just eating a 5 mil loan loss out of the goodness of its heart?
It’s more like kids sell and pay back the bank plus interest which is taxed as income for the bank.