Thursday, October 13, 2011

Lose your business, lose your house too. Ow.

Here's a refinement on the home equity horrors:
"A recent accounting study estimated that 34 percent of entrepreneurs used their houses to help fund their businesses, said Samuel Bornstein, a professor at Kean University in Union, N.J. But the double whammies of a housing downturn and nationwide economic slump mean many of those business owners... are now in trouble."
This twist is in a report (Pt. 1 here and Pt. 2 here) by SF Chron financial columnist Carolyn Said on the hell facing Peter Dracopoulos, owner of a struggling tourist shop near the Alcatraz ferry. He mortgaged his house to support the business through a tough spot. The business didn't recover enough to pay off the debt. Dracopoulos, who is blind, may lose the house where he has lived since the age of three. "After being contacted by The Chronicle, Wells Fargo postponed his foreclosure date a month, to Dec. 5. "

Of course Wells Fargo is otherwise in the news today due to anti-foreclosure demonstrations at its San Francisco headquarters.

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