Feature request: Loan, Lien, and Mortgage system

[Arrta]

I would like to propose that a Loan, Lien, and Mortgage system get created and added to the game, This would supplement the existing loan companies and potentially allow them to do more business, as they would not need to take ownership of vehicles and property, but instead would have liens against them.

Presently the loan companies loan out cash to people and have to take ownership of items/property as collateral until the loan is paid off and the ownership of items are returned to the person who took the loan out. In cases where loans are given to purchase a home, the home is owned by the company (owner or employee) until paid off and the home is then transferred to the client. With the proposed system you could instead place a lien on one or more items that someone owns without having to take ownership of the item. This system would allow the loan company to get paid through the sale of the property with the lien on it without having to take actual ownership of the property.

Example situations:
Client comes in and would like a mortgage to help them purchase a home. They have $500k but the home is being sold for $1.25 million and they ask for a loan of $750 to cover the difference. After agreeing to terms and interest rates, a representative from, the company would go with them to the location of the home and they would jointly purchase the home. There would need to be a new UI or purchase system implemented to facilitate this purchase.
During this purchase, when the loan company pays their portion, their is an automatic lien applied to the property title, as well as a debt from the client to the company is established with the agreed upon pay off date and interest rate. As the client pays off the debt they owe, the loan company's stake in the home (lien) will decrease, until when it is paid off the lien is removed.
If the client ends up selling the home before the debt is paid off, when they do so, the outstanding amount of the lien is taken out of the sale in order to pay off the outstanding debt.
If the loan is defaulted on, the loan company can file a claim (court?) to foreclose on the home and sell it to recoup their losses. This would trigger an uncontrolled sale of the home and "resetting" of they keys so the current owner cannot access the property. When the home is sold, the loan company would receive some of the proceeds to recoup losses. The sale of the home could not drop below 80% of the outstanding debt.
If the client ends up leaving the city before the home is paid off and the payoff date has not come, the home would be foreclosed on by the existing system. The automatic sale of the home also would send the lien amount to the loan company to pay off the debt. A change to the current foreclosed home sale system would be needed so that the sale of the home could not drop down below 80% of the outstanding lien amount.

Similar to the above, if someone were to come in and request a loan for a reason they chose not to disclose, they could offer a presently owned vehicle or home as collateral for the loan. In this case after the terms and interest rate is agreed on, the loan company could give them the funds they requested and a lien is placed on the property that was offered as collateral.
Similar to the mortgage system, a home with a lien on it sold before the loan is paid off would take some of the proceeds to pay off the debt. Vehicles used as collateral would be blocked from private sale/transfer (cash exchanged and /transferVehicle used), or a vehicle for vehicle transfer/exchange. They would have to be sold at one of the car markets and again the outstanding amount would be taken from the sale to cover the debt. The client would also be blocked from selling the vehicle for an amount lower than the outstanding debt.
If the loan is not paid back by the agreed upon date, the loan company can file a claim (court?) against the property to have its ownership transferred, and then sell it to recoup losses.

I look forward to discussing this idea with others.

[Xoza]

I have brought this up a few times in a few variations.

To simplify the process, loan banks should be able to simply 'freeze' all owned assets and tie them to loans. This way the owner can still use it, but simply cannot trade them. If they do sell the asset, the minimum they should be able to sell it, would be the total amount of the loan. Tying the player loan value to assets with the amount, would be an easy way to designate these items.

When items are sold, the amount received would go fully to the debt. In addition, this would allow the player to pay the loan, and, if they require another loan to make a different purchase, they can simply return, or choose not to but they would be relieved of that debt.

Ex: 

• If player loan > 0, disable /transfervehicle
• if player sets price < debt amount, fail message *must be set to [loanamount] or higher* (while this could have negative effects, trying to sell lower value items, it still pushes the player to balance out the loan or look for alternatives.

If a player fails to pay the loan in 3 months, the asset should be able to be foreclosed or repossessed where the house or car is either (by the choice of the loan bank owner), taken by the bank, or placed 'for sale' for the remaining cost of the loan +tax+fee%.

I'd even say, that bank account withdrawals should be 'locked', or it should disallow you from withdrawing entirely in large amounts. This way you can still purchase small items, but unable to give away your entire account or purchase large items with money that technically 'doesn't belong to you'.  In addition, all transactions should automatically withdraw 'payments' or an amount to pay the loan. This way it is a reminder and ensures constant payments to the loan.

One of the big issues is, players don't realize where and how loans work, and how serious taking out a loan can be, then they neglect it, try to liquidate or give away their money and assets to friends, then never pay it and/or eventually just stop playing. At this point, if the bank doesn't seize or hold assets directly, they lose all potential for profit. This happens enough, and you make zero profit.

Right now, loan banks are one of the most difficult businesses to own, run and be successful and that's why many, many precautions are taken to ensure at least minimal success or avoidance of loss.

There are other ideas, alternatives and solutions, but they have to do mostly with refund requests or money that is not 'player owned' that could be set and tied to the bank on  an OOC level that each bank can have out at once.

This whole thing however, should strictly be tied to loan banks only as 'official scripted businesses'. However, I do believe loan banks should be able to designate 'loan masters' of which can give out loans, in representation of the bank, but tied to their own account and money. Banks would be large, with several capable loan agents, I'd rather see more of this, or even more banks, then allowing anyone be able to do it as it should be done on an official, organized business capacity.

Currently all transactions must go through the owner of the bank. However, there are many options for this, including being able to do personal loans and investing directly in that loan.

Ex: (How we run personal loans)

• My friend wants a loan of 50k... but I don't trust them much yet.
• I'll go to a loan bank, give them 50k, they'll loan it to my friend, tie it to an asset which either I can hold, or the bank can hold.
• Once my friend pays back, I get my money back, plus a little extra, the bank gets a little interest and my friend gets their asset back.