Last night the most shocking scene from “American Chopper” of Orange County Choppers was the preview where viewers saw a caption with OCC and their money related troubles written in clearly visible and bold headline. If you watch reality TV shows then you must know that what is seen on television set is not in real time. An article was written back in November where OCC foreclosure was mentioned.
GE Commercial Finance Business Property Corporation has played behind the OCC foreclosure, as per the original report published in November, but the news hit big thanks to last night’s “American Chopper” preview next to a new episode on the Discovery Channel. Public money troubles seem to chase the Teutul family. During 2007, the family was accused of bankruptcy fraud.
What Actually happened in Orange County Chopper’s lawsuit:
As per the news article published on Nov. 18, 2010, OCC did not actually failed to make its July mortgage payments which are of $96,400 and $14,000; they deliberately did not pay them as a form of deal renegotiation. According to a reputed news source the OCC lawyers said, the Choppers did not make mortgage payments with the aim of putting pressure on the lender to amend the conditions of the loans.
So, OCC lawyers gave the logic, if property values drop, mortgage holders enclose the legal right to discontinue making payment since at the moment the original mortgage contract doesn’t go with the existing economic conditions. Home values rise and fall. There are even inconsistencies between how the value of a property will be judged and how the insurance company will set the values of that home.
By discontinuing payment to a formerly agreed-upon mortgage amount for the reason that the financial condition changed is not a suitable way of negotiating or dealing with borrowed money. These people should understand that what would happen when someday the property values will go back up? Do they then be expecting the mortgage company to take legal action against them to re-establish the original terms of the financial agreement?