Jack Johnson files for bankruptcy

[Thomas]

Harsh. 

http://bluejacketsxtra.dispatch.com/content/stories/2014/11/20/blind-sided.html

 

[Schildog]

this is gnarly. it's unconscionable that his parents got loans against his future earnings. he was naive for sure, but i feel bad for him. good thing he is still somewhat young and has at least 8 more years in him.

[gotbeer]

I still can't understand how these people that make so much money have practically none of it left.  Even if I did daily strippers and blow, I don't think I could get through $18 million in 9 years.  Although I would have a strong desire not to commit suicide, so even broke, I'd have that going for me.

[Schildog]

did you read the story?

[gotbeer]

did you read the story?

 

no, I read this story.  Which states he has $50k in assets left.

 

http://sports.yahoo.com/blogs/nhl-puck-daddy/jack-johnson-files-for-bankruptcy-thanks-to-parents--loans-against-contract-154348457.html

[halobob]

Wow his parents ****ed him good, brutal.

[mrwicked]

That sucks.

Reminds me of the 30 for 30 story on professional athletes.

They very rarely have a solid financial foundation put in place.

[Tank]

man, what an awful story. hard to see the parents just dive in to his bank account like that. deals with less than reputable people? how does that happen with parents?

 

always like jack. hope he lands on his feet. can't imagine he'll be spending much more time with his parents outside of court appearances. 

[deepdrive]

What about the thieves making the loans. 12-24% with a guaranteed contract as collateral.

[Vegas Halo Fan]

If you made $55m, what could you possibly need a loan for? I could buy a hell of a house and car, furnishings and travel the world for years on a fraction of that.

[Brandon]

Read this earlier. Feel bad for the dude. Power of attorney to the mother and the parents just go apeshit.

 

What stands out the most is I have absolutely no idea how they signed off on a 12% mortgage and borrowed 3m at 24%.....both are just absurd. I actually want to know how a loan officer pulled that off.

[halobob]

Read this earlier. Feel bad for the dude. Power of attorney to the mother and the parents just go apeshit.

 

What stands out the most is I have absolutely no idea how they signed off on a 12% mortgage and borrowed 3m at 24%.....both are just absurd. I actually want to know how a loan officer pulled that off.

I don't think they went the conventional loan route, pretty sure it was loan sharks which is why the rates are so absurd.  

[Thomas]

What about the thieves making the loans. 12-24% with a guaranteed contract as collateral.

 

You mean US House of Representative Rodney Blum? So yeah.

[Brandon]

I don't think they went the conventional loan route, pretty sure it was loan sharks which is why the rates are so absurd.  

 

I don't see why the need for that with the mortgage. It's a super jumbo and can easily qualify as a second home purchase. With the income coming in and assumed good credit due to high earnings, they should still get approved. Granted, the parents trying to get a 15m home with a contract of just over 30m and locking up 50% of his net worth is beyond moronic. It may be over a super jumbo, but seems 5-6% too high.

 

The 3m at 24% is just straight up egregious. That's straight up car title loan territory. Even the hard money lenders I know only charge somewhere between 5-10%, even for this kind of cash. If you have a commitment as they do with future earning guaranteed you can even get a loan for a lot less because you have the collateral backing of future wages. Granted, if they are borrowing 3m they likely have debt issues, but would still never touch 24%.

[Tank]

What about the thieves making the loans. 12-24% with a guaranteed contract as collateral.

 

yeah, that's just insane. 

[Brandon]

I think it's more criminal and irresponsible for someone to sign a document knowing they are going to pay 24% interest.

 

I guess when you're playing with other people's money you don't care. I don't put this on whoever was the lender, the parents didn't have to accept the terms.

[deepdrive]

Upon further review...

 

It appears some of the loans may not originally have had the rates reported. Seems the mom took out loan(s) at lower (but still way above what you would think she could get with the collateral) rates and then almost immediately defaulted. Clauses kicked in that shot the rates up.

[Angel Oracle]

Read this earlier. Feel bad for the dude. Power of attorney to the mother and the parents just go apeshit.

What stands out the most is I have absolutely no idea how they signed off on a 12% mortgage and borrowed 3m at 24%.....both are just absurd. I actually want to know how a loan officer pulled that off.

Johnson has gotten the royal screw over in life.

Gets traded just before the Kings win the first Cup.

Now this?

Edited November 28, 2014 by Angel Oracle

[Lhalo]

Johnson has gotten the royal screw over in life.

Gets traded just before the Kings win the first Cup.

Now this?

He also goes through life as "The other Jack Johnson."

That's got to suck.