[Dec 15 2019] Foreclosure Saga - http://civilinquiry.jud.ct.gov/CaseDetail/PublicCaseDetail.aspx?DocketNo=FBTCV196091825S

[actually]

I think dave will still owe taxes on the property that probably went unpaid while in his possession, condo association fees, court costs

I can't imagine he was paying property tax and condo fees but not the mortgage

I wonder if anything will happen to his "business"

Pretty sure the property taxes were paid by the bank. If so, they'll just collect that additional pound of flesh along with the loan amount.

 

[tzgnilki]

If he wasnt paying his property taxes the state can take his property and sell it to pay back taxes. Connecticut doesnt fuck around. Now who gets his condo? The state or the bank? If he owes like 5 - 10 grand in back taxes and the state unloads it for 20k does that mean he owes 80k to the bank or would he still need to pay the full price?

I can only assume the bank will get his CT condo, and the irs will just go after dave's WAkahndo for the CT taxes if they wern't paid

 

[FalsePositive]

Make no mistake, Dave is aware of this and in fact intended for this to happen (as evidenced by his video from after the wedding). He fully intends to ignore this for as long as possible, maintaining a shred of plausible deniability, and eventually to go into full panic mode.

It's really a matter of will his paypigs or dying parents bail him out yet again.

 

[James Smith]

If he wasnt paying his property taxes the state can take his property and sell it to pay back taxes. Connecticut doesnt fuck around. Now who gets his condo? The state or the bank? If he owes like 5 - 10 grand in back taxes and the state unloads it for 20k does that mean he owes 80k to the bank or would he still need to pay the full price?

The state gets priority on the proceeds from the sale. If there's money left over after what they needed it goes to the next lienholder which is the lender. If there's money left over after what they needed it goes to the next, which is DSP in this case as far as we know.

 

[BrokeACKMountain]

Then he should file a malpractice lawsuit against that attorney. I wondered that too, until I realized for that much money a law firm would at minimum notify the court DSP would be participating. The only way they wouldn't is if they were advising him to ignore the lawsuit.

Pictured: Phil's lawyer/tax guy.


If midfield have purchased the mortgage from the previous mortgage lender, they've not done it out of the goodness of their hearts - they've done it because they believe that they can make money from Phil. Banks are good (sometimes) at measuring risk vs reward. As some have already speculated, given Phil's lax attitude on the matter, I'm not sure if Phil is playing us or whether he just doesn't understand what is happening (probably the latter). Of course this could explain his ramped up begging and pissy attitude over the summer.

 

[Kermit the Frog]

Phil knows what's going on. He's been given numerous letters from the bank telling him to pay up or they're going to foreclose, which Phil has obviously ignored. He also hasn't acknowledged the legal documents sent his way. Phil is listed as "Non-Appearing" (return date was 12/10/2019) while the CT condo association responded to theirs on time. Phil must be under the impression that if he just ignores everything, eventually the bank will get bored and move on. It's already in the courts, they're going after the money and Phil is apparently twiddling his thumbs.
If Phil wanted to mediate, he should have already been filing the necessary paperwork to do so. And according to CT's foreclosure mediation program, Phil himself would have to meet with the mediator in premediation meeting(s) and attend at least the first mediation session with the bank (https://www.jud.ct.gov/foreclosure/homeowner_qs.htm). Fat chance of that happening. Unless Phil takes the initiative (lol), there's nobody representing Phil's interests in this case, he's entirely at the mercy of the bank and the court. The condo association isn't even in any real trouble and is going to defend itself by throwing Phil under the bus, as they too want someone who is going to pay their fees and not get them wrapped up in bullshit like this.
Phil won't publicly panic until the whole process plays out without him and he's notified that after the sale of his former condo, he still owes $60,000 to the bank. Oh well, nothing he could do.

 

[That Hedonist Nerd]

I want to touch on this because people keep saying this.

He's not going to get a payment plan. They will simply get a court order authorizing them to go to his bank once a month and withdraw the maximum amount they're legally allowed to, or to go to the various companies he gets paid by (Twitch, PayPal, YouTube, Patreon) and instruct them to divert to the lender the maximum amount they're legally allowed to. They aren't giving him the option to voluntarily pay because there's no reason to. They can force him to.

They can't go to twitch, paypal, etc because he's not an employee, he's a contractor. Not even the government can take money from one business that is going to another business - because there is overhead with a business and all of that is taken out of the amount used to gauge how much he has to pay.

That's the other thing - normally you could just order a bank to give money (Just open a new account somewhere else), or order the company to garnish. But owning your own business is interesting because Dave can do some things are an obvious fuck you to the government, that they can't get around.
I'll legit be the KF dirty business man and explain some of the interesting grey areas if I have to - but this is exceptionally easy to get around and still maintain a sense of legality.

Also, the bank won't be able to come for the actual amount owed until they sell the condo at auction. Tiny condos in non-ideal locations aren't going to go at a premium. It will sell at auction, but it might end up selling for the opening bid of $5000 - $15000, whatever they decide is a good opener. Dave could be responsible for significantly more than he thinks.
That's why a foreclosure or repossession is the worse thing - they will 100% not get the maximum amount for it because they don't have to, they just need to sell it for something so they can figure out the total owed.

 

[Sparkletor]

They can't go to twitch, paypal, etc because he's not an employee, he's a contractor. Not even the government can take money from one business that is going to another business - because there is overhead with a business and all of that is taken out of the amount used to gauge how much he has to pay.

That's the other thing - normally you could just order a bank to give money (Just open a new account somewhere else), or order the company to garnish. But owning your own business is interesting because Dave can do some things are an obvious fuck you to the government, that they can't get around.
I'll legit be the KF dirty business man and explain some of the interesting grey areas if I have to - but this is exceptionally easy to get around and still maintain a sense of legality.

Also, the bank won't be able to come for the actual amount owed until they sell the condo at auction. Tiny condos in non-ideal locations aren't going to go at a premium. It will sell at auction, but it might end up selling for the opening bid of $5000 - $15000, whatever they decide is a good opener. Dave could be responsible for significantly more than he thinks.
That's why a foreclosure or repossession is the worse thing - they will 100% not get the maximum amount for it because they don't have to, they just need to sell it for something so they can figure out the total owed.

"The best way to help right now is to tip Kat's PayPal account. I get that money immediately and the bank can't touch it"

 

[Horusdidnothingwrong]

Is this the end of the Legend of DSP? Dun dun dunnnnnnn

 

[tzgnilki]

Phil knows what's going on. He's been given numerous letters from the bank telling him to pay up or they're going to foreclose, which Phil has obviously ignored. Phil is listed as "Non-Appearing" (return date was 12/10/2019) while the CT condo association responded to theirs on time. Phil must be under the impression that if he just ignores everything, eventually the bank will get bored and move on. It's already in the courts, they're going after the money and Phil is apparently twiddling his thumbs.
If Phil wanted to mediate, he should have already been filing the necessary paperwork to do so. And according to CT's foreclosure mediation program, Phil himself would have to meet with the mediator in premediation meeting(s) and attend at least the first mediation session with the bank (https://www.jud.ct.gov/foreclosure/homeowner_qs.htm). Fat chance of that happening. Unless Phil takes the initiative (lol), there's nobody representing Phil's interests in this case, he's entirely at the mercy of the bank and the court. The condo association isn't even in any real trouble and is going to defend itself by throwing Phil under the bus, as they too want someone who is going to pay their fees and not get them wrapped up in bullshit like this.
Phil won't publicly panic until the whole process plays out without him and he's notified that after the sale of his former condo, he still owes $60,000 to the bank. Oh well, nothing he could do.

dave might have his accounts frozen

 

[Synth]

Also, the bank won't be able to come for the actual amount owed until they sell the condo at auction. Tiny condos in non-ideal locations aren't going to go at a premium. It will sell at auction, but it might end up selling for the opening bid of $5000 - $15000, whatever they decide is a good opener. Dave could be responsible for significantly more than he thinks.
That's why a foreclosure or repossession is the worse thing - they will 100% not get the maximum amount for it because they don't have to, they just need to sell it for something so they can figure out the total owed.

It really depends. Dumping that for less than $60k would be a monumental loss outright that they think they can get more out of by sucking Phil dry over 30 years. Let's assume a better scenario of $30k sale, half of what we think it's worth.

A 5% interest rate over 30 years on $70k works out to the bank receiving approximately double what's owed, not counting any fees and other shit, and that's like $400/mo. That's a really fucking forgiving interest rate from a bank that smells blood and wants its money and has no investment in the client. Nobody really knows what Phil's bills are like, and that's what shit like this and wage garnishing is based off of. Something like this I'd expect them trying to get something in the range of 15%, which is similar to those predatory introductory/special rates on credit cards that start out at 0-3% and jump up to like 17% after the promotional period has expired.

15% is $900/mo and works out to $250k in interest, which is great for the bank, but that would probably break Phil, so I don't really see that happening. It really comes down to what the courts feel he can swing. Remember that they don't want him to go bankrupt or be unable to pay, they want their money.

I think the more important thing is that the debt was bought out by a bank rather than what may be potentially owed or what they think they can get out of it. The only reason debt is ever bought is that the party trying to get rid of it needs money more than the party buying it. Obviously, they're confident they can get from Phil more than they paid or they wouldn't have bought the debt, but I don't see them trying to just dump the property as fast as possible and sticking Phil with a 15% rate that would have him owing $1000/mo for 30 years, because I don't think he can swing that.

The bank probably knows a lot more than we do. I just don't see them dumping it as soon as possible and going that way, but who knows?

 

[That Hedonist Nerd]

"The best way to help right now is to tip Kat's PayPal account. I get that money immediately and the bank can't touch it"

You've got a large part of it. Technically fraudulent, but hard to prove vs a simple "Oh, I just decided to use this account so my wife felt like more a part of my business"
They'd work to get her stuff too of course, but that takes more time.

People seem to think the government has a magical database that they can put a name into and it returns all of your bank accounts. They don't.* They get bank accounts because people tell them what banks are being used by the accused, and then go after them that way.

*Real Answer: While there technically are databases that contain the entirety of the US banking information, they aren't updated in real time. In fact, barring you making any deposits large enough for a CTR (Form 8300) which everyone knows about, or if you made cash deposits over $2500 - $3500 (Depending on where you are) that triggers a "Potentially Suspicious Activity" form that only the banks fill out, most banks will at most report quarterly, though legally they only are required to do so once per year. Knowing which banks report when is 101 when it comes to bouncing money, because they don't report if you opened and closed an account between the time they report.

 

[Pargon]

Is this the end of the Legend of DSP? Dun dun dunnnnnnn

dave might have his accounts frozen

Banks typically don't do that unless under order from law enforcement when illegal activity is suspected or that there's a possibility of funds gained from suspected illegal activity might be moved elsewhere. Such funds are often considered evidence and seizing them is as you might expect a very time consuming process and so freezing accounts is done to keep them where they are until they can be acquired.

DSP is a responsibility-dodger, not a cartel boss or inside trader.

 

[Red Mask]

Is this the end of the Legend of DSP? Dun dun dunnnnnnn

I doubt it. People have been talking about the "downfall" of Phil's for years and he's always been doing fine. I can't see how this would be any different. He seems to have a way of getting around things like this.

 

[Martys_not_smarty]

Anyone else notice on those court forms how it stated that the bank, the city/county and the condo organization can take a piece in the form of interest on top of what he owes?

 

[Synth]

Anyone else notice on those court forms how it stated that the bank, the city/county and the condo organization can take a piece in the form of interest on top of what he owes?

Well, there's always interest when you're paying people back, that's how banks and loans work.

In this case, it would probably be interest applied to debtthat wasn't being paid because that's "investment money" that the parties involved couldn't use to improve their own earning potential: if someone owes you a grand and pays you a year later than planned, and you planned on using that grand to invest and make an extra 5%, that's 50 bucks you didn't make that year you can argue for. Not sure who would be entitled to what or how much, but it's not surprising.

 

[Takodachi]

Is this the end of the Legend of DSP? Dun dun dunnnnnnn

As long as his parents live, phil will manage to 'overcome' all his challenges.

 

[BallBuster]

As long as his parents live, phil will manage to 'overcome' all his challenges.

People trying to retire but can’t because they have to keep bailing out their loser son will eventually just stop. You may not believe it but eventually the burden becomes too heavy. Personally, I do not believe they are in financial situation to help him without doing something drastic.

Now let’s examine something drastic: taking out a loan against their house. I’ll assume it’s paid for at this point.

Okay so they take out a loan to to help Phil. Now they have to pay back that loan. But what happens when they die? Guess their only child inherits that home. Awesome he can sell it and get even more money! Oh, that’s right you can not sell a home with a loan against it. Guess he is back at square one.

Call me optimistic but there is no happy ending in this saga. There is no quick fix or easy solution. The banks are like a Terminator. They only care about their prime objective which in this case is money.

It’s ironic: All Phil cares about is money. Money money money. Now, he has a powerful entity on his ass that only revolves around money. Live by the sword, die by the sword. Poetic fucking justice if I have ever seen it.

 

[Dumpster dived waifu]

People trying to retire but can’t because they have to keep bailing out their loser son will eventually just stop. You may not believe it but eventually the burden becomes too heavy. Personally, I do not believe they are in financial situation to help him without doing something drastic.

Now let’s examine something drastic: taking out a loan against their house. I’ll assume it’s paid for at this point.

Okay so they take out a loan to to help Phil. Now they have to pay back that loan. But what happens when they die? Guess their only child inherits that home. Awesome he can sell it and get even more money! Oh, that’s right you can not sell a home with a loan against it. Guess he is back at square one.

Call me optimistic but there is no happy ending in this saga. There is no quick fix or easy solution. The banks are like a Terminator. They only care about their prime objective which in this case is money.

It’s ironic: All Phil cares about is money. Money money money. Now, he has a powerful entity on his ass that only revolves around money. Live by the sword, die by the sword. Poetic fucking justice if I have ever seen it.

In the case of Phil's parents dying and leaving him a house with a loan on it, cant he just refuse the estate?

 

[BallBuster]

In the case of Phil's parents dying and leaving him a house with a loan on it, cant he just refuse the estate?

It’s possible. I’m not versed in this subject but I believe legally a bank can still target Phil and harass him in almost a sins of the father kind of deal.

I know certain debt cannot be inherited like credit card debt, but being willed a house from parents might have other caveats within the terms that make refusal impossible for a child.

It might also depend on how the will was drafted. Upon death of the parents he could be automatically named executor of the estate.

These are complicated paths I’d rather not delve down simply because I am not versed in this area. I’m sure someone else with some more experience or knowledge can chime in though.