The cool thing is she’s probably going to have to take all of them because they’re all leverage to the tits and his ownership stake in them is worth almost nothing. lol
Interesting. If the government seizes properties that have been borrowed against, the government has to pay those loans? Can’t just cancel them or anything? Then you’re right and they might be worth a pittance. Especially after the over-inflating fraud. I wonder if Trump was able to get loans based on their fraudulent amounts.
No. The state gets what part he still owns— Trump still owes the debts. If it ends up Trump really has nothing and, after seizing all of his real estate and investments, it still doesn’t amount to what he owes the state, Trump will have to declare personal bankruptcy. At that point, all of his assets will go up for sale and all his debt consolidated and managed, and all of his income will be garnished until his debt is paid off.
This may, in fact, be what happens. Just like Rudy Giuliani and Alex Jones.
I’m so hoping that Jones sees the IW brand sold to someone who will make it a reasonable force for good. I know the Knowledge Fight guys would love to have it, and they’re fighting the real info war!
If a property is seized the government only gets the equity that the owner had in it so if Trump owns a 2B in property but owes 1.5B then the government may seize all 2B in order to satisfy the debt he owes the government. Worse the government will try to get as much value as possible but the value realized by a short term sale may be less than could have been realized had the customer had time to find the appropriate buyer. So if they only get 300M they can seize additional properties to satisfy the debt.
Nobody in their right mind wants the government doing this for them instead of mortgaging and or selling their own stuff. He committed such obvious fraud he should have known the jig was up when it went to trial and started seeking buyers or mortgaging. They could have self funded an appeal bond hoping to reduce the damages and prepared for worst case losing it all.
I assume what’s worse with the 300M scenario is that he still owes the other parties the 1.5B. Since the collateral is now gone, those parties will immediately demand full payment. So he’ll be forced to sell other properties to pay those debts, and it’s a cascade of a whole other set dominos of fire sales.
Not the government directly, from my understanding the loan payment comes from the sale amount, before it is applied to the judgment. The property would end up being sold, then minus any outstanding debts on the property, and the remainder applies towards the judgment.
Outstanding loans must still be repaid, creditors don’t get screwed just because it’s part of a court judgment and seizure, in fact they get an immediate return. Depending on the loan agreement, if there are prepayment penalties for those loans… those would likely apply as well.
So it is technically possible it seems, with Trump’s fraudulent property valuations for loans, that he could end up with a negative overall return by selling various highly leveraged property. If they fraudulently valued something at say $600M and got a loan for $500M based on that… but the property is actually valued and sells for $300M, that loan would be underwater, like millions of American homes. He would still owe $200M for that loan, but would no longer have the property.
If all of his properties are massively overvalued and highly leveraged against, he could end up with basically nothing left from this. Forced to declare personal bankruptcy and losing all the real estate. Court judgments for fraud very rarely can be discharged by bankruptcy, so while other debts might be discharged the penalties will likely all apply, regardless.
I believe the sales would count as income for tax purposes next year as well. Just to be another kick in the nuts.
Here is an interesting question in the example case where he owes 500M on a 300M property ergo negative equity can the government still force the sale when the expected return is negative ergo the government expects to get nothing? Alternatively are seizures irrespective of expected return and if it turns out to be overvalued it’s his problem?
This sounds like it wouldn’t be just another bankruptcy, either. He’s gone through the bankruptcy process before. Lots of businesses do as a strategic move. He could end up with absolutely nothing after this, and even if he lived for another few decades (unlikely), he has no foundation for rebuilding.
