Replies to This Discussion

Permalink Reply by DNici on March 27, 2012 at 3:45

Since it is in line with TX law, how is it a fraud?

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Permalink Reply by Krkyoldhag on March 27, 2012 at 3:57

So far as the deed transfers ..yes it was legal under Texas law.  But it was fraud by the bank.

Here how it works..you mortgage something.  You default.  The bank auctions off the property.  The bank should auction off ALL the property.  In these cases they stripped the mineral rights from the land and sold off only the land.  The borrower did not get full value from the proceeds of the bank sale.  That's fraud.

I don't know what banking laws said back in 50's when this happened..but whether it was legal or not, it was shystey.

Is that a word? Ok sleezy.

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Permalink Reply by DNici on March 27, 2012 at 4:20

Ok, I agree.

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Permalink Reply by The_Baron on March 27, 2012 at 5:34

I think the bank should have the right to do whatever they want. They hold the mortgage.

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Permalink Reply by DNici on March 27, 2012 at 9:06

The Bank does not own the property. They hold the Mortgage, a lien on the property. As part of the foreclosure they auction the property and the proceeds are applied against the mortgage balance. The bank must as mortgage holder give the property owner credit for the value of the property foreclosed. Usually the bank auctions the property and the fair value of the property is determined from this sale.  Giving away part of the property, the undelying mineral interest, to a director is not fair to the actual property owner unless they were compensated as part of the foreclosure process. Subsequent buyers of the property are not slighted because they are buying the property and not the mineral interest which has been seperated from the property. If they do not compensate the owner of the property for the value of the mortgaged property, then this becomes a fraudulent transaction.

However, since most people, that are unable or unwilling to pay their mortgages as required and agreed to by the owner, are also unaware of the this posiibility or even the process itself, the bank and its directors were able to accomplish this without challlenges.

 

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Permalink Reply by Scott on March 27, 2012 at 6:07

I don't agree. That's not fraud. They own the mortgage and it's within their right to sell what they want to sell.

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Permalink Reply by Roscoe Kranson on March 27, 2012 at 7:14

Ownership is just that, they have the right. The only thing sleazy happens to be the sniveling of those without ownership. Everyone in Texas who purchases something with mineral potential does due diligence. If the buyer does not have initiative or sense to do it that is just too bad. I think most of us have heard enough about what the bank should do. Funny it comes from people who whine about their shrinking royalty check.

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Permalink Reply by DNici on March 27, 2012 at 9:13

"Qwnership is just that..." Yes, if the bank forecloses and takes ownership they have the right to transfer ownership of the mineral interest, However, if I am a stockholder of the bank, then I have been slighted by the bank giving away its assests, the mineral interest, to a director.

I have no problem understanding that this could easily happen, given the greed mentality of people that think they are due something for nothing.

Lastly, "Funny it comes from people who whine about their shrinking royalty check."

Where did that come from? I did not remember that being part of the discussion.

 

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Permalink Reply by Roscoe Kranson on March 27, 2012 at 18:19

The person who brought up the sleaziness term has lamented the shrinking royalty checks in other discussions. You are not expected to remember. 

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Permalink Reply by Antiqued Rose on March 23, 2012 at 5:34

And I thought DrWaveSport Cd1 was a really good surfer dude from Cali! Looks like this camp nurse jumped to the wrong conclusion. Way way back in the day, I worked in two TX teaching hospitals, one of which was Ben Taub.

HANG, nice eagle eye! Good news, for now.

Wonderful posts by everybody.

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