In the bustling metropolises of China, a unique profession has emerged, one that thrives on the nation’s growing judicial auction market. They are known as ‘foreclosure hunters,’ individuals who specialize in clearing out properties that have been seized by courts to recover debts. Among them is a man named Wei Cheng, known online as Xinba, who embodies the spirit of this新兴 occupation.
The Challenges of Foreclosure Execution
On September 5, 2024, Xinba, a professional foreclosure agent, stood outside a house in a Shanghai suburb, attempting to enforce a court-ordered eviction. I can hear you inside, he announced, pounding on the door. The house belonged to a mother and her son, who had defaulted on a bank loan three years ago. The bank, unable to recover the loan through traditional means, had turned to Xinba for help.
The difficulty in executing foreclosures lies in the resistance from occupants, often referred to as ‘old liars’ or ‘laolai’ in Chinese slang. These individuals use various tactics to delay or prevent the eviction process, making it nearly impossible for new owners to take possession of the property. According to data from property data company Guoxinda, the number of foreclosed properties listed for auction in China grew by 68.74% in the first eight months of 2024.
A Life of Struggle and Redemption
Xinba, 39, grew up in Hongzhen Old Street, a neighborhood known for its tough reputation. His background is humble, with parents who were part of the city’s lowest socioeconomic class. My father was a junk collector, and my mother was a laid-off textile worker, he told Southern Weekly. His rough upbringing instilled in him a desire for redemption and financial stability.
Xinba’s journey into the world of foreclosure began with a betrayal. In the late 2000s, shortly after his family received compensation for a government land requisition, a friend swindled him out of the money. Determined to recover his losses, Xinba formed a debt collection team and began offering foreclosure services. Why not turn this into a business? he thought.
The Business of Foreclosure
Foreclosure hunting is a competitive and often confrontational business. Xinba and his team would set up stalls outside courts and exchanges, advertising their services with simple banners. The fastest way to make money was through foreclosure, he explained.
The key to Xinba’s approach is psychological manipulation. He often imagines himself as a lion, facing off against ‘sheep’—the occupants of foreclosed properties. You have to make them feel that you are the lion and they are the sheep, he said. Only then will they be kind to you and beg for your kindness.
For Xinba, resistance from occupants is not necessarily a bad thing. The more uncooperative the occupants are, the greater the challenge and the higher the potential profit. His success has attracted a significant following, with nearly 800,000 subscribers on Douyin, China’s version of TikTok.
The Ethical Dilemma
Despite the financial gains, the ethical implications of foreclosure hunting are complex. For many, the occupation is synonymous with exploitation, as it often involves dealing with vulnerable individuals who have fallen on hard times. Whoever throws the first punch loses, Xinba said, emphasizing the importance of avoiding confrontation.
The rise of foreclosure hunters reflects broader trends in China’s economy. As the number of foreclosed properties continues to grow, so does the demand for individuals like Xinba, who navigate the gray area between legal enforcement and ethical considerations.
In conclusion, the story of Xinba and other foreclosure hunters offers a glimpse into the challenges and complexities of debt recovery in modern China. As the country’s economy evolves, the role of these professionals will likely continue to expand, raising important questions about justice, compassion, and the pursuit of financial stability.
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