RedHawk Holdings Corp (fka SNDD)

[Divest]

No bank in the world is going to foreclose for a single missed or 2 or 3 payments. No bank wishes to have a single property on their REO (real estate owned). It’s a killer on their own financial Statements. No bank wants to own especially a house. Banks lose their azz in home foreclosure sales as they become the party responsible to bring the house up to a level of compliance for HUD approval and get stuck with roofs, outdated electrical panels, broken air conditioning, etc.

If that were true maybe you can explain these stories from Louisiana:

https://www.wwltv.com/article/news/investigations/he-never-missed-a-payment-but-the-bank-still-foreclosed-on-his-home-anyway/289-611519963

Or this paper:

https://www.sec.gov/comments/jobs-title-vii/jobstitlevii-5.pdf

Now let's talk specifically about the bank in question Ameriquest Financial which had to pay a $325 million for fraudulent lending practices back in 2006, as you can see here:

https://portal.ct.gov/DOB/Newsroom/2006/Ameriquest-to-Pay-$325-Million-in-Nationwide-Settlement

I see no reason not to believe that the terms of the loan that Klug accepted would have been unenforceable if he was a private homeowner, and I think that it was foolish for him to go to a known shady lender, but I am not going to pretend that a known bad actor isn't a known bad actor just to support a false narrative that makes Ameriquest Financial seem like it isn't one of the worse offenders in predatory lending...