Replies to post #16260 on Cal-Bay International Inc (CBYI)

[keymaster]

In a foreclosure, the deficiency amount is generally the amount owed on the mortgage plus the amount spent by the lender to get title (in this case, as you say $10k) minus the amount that the lender receives from selling the property.

[coin_in_fountain]

So the mortgage company paid $10K to reclaim the property previously mortgaged at $2.5M? That sounds a little fishy. If the property was worth so much then somebody else would have bid more. Unless, as you say, it turned out to be a dud property that nobody could build on for whatever reason, and Roger just decided to walk away from it.

So if Roger wins the stonewall note back (unlikely), a big chunk of the proceeds would go to pay this deficiency judgment. Or, if he makes ANY money in the future from whatever source, the mortgage company will be the first to collect.

It also makes you wonder if Roger paid a greatly inflated property price with junk EBAY stock only for the purpose of making CBAY look better on paper. He certainly diluted our stock to use as collateral in past real estate transactions. When asked about past stock dilutions Roger once told us something like, "Hey, it's not dilution if it's used for collateral, that's how we grow the company without any capital". Investors didn't seem to care about this tactic when a corresponding asset showed up on the balance sheet.

At this point the bottom line looks like we still have no evidence to indicate that CBAY's assets exceed liabilities. On the contrary, it looks like another large bill collector at the back of the line.

I'm still sticking with my guess that Roger is diluting the stock more, and selling it for whatever price he can get for the purpose of paying his salary.