Full list of Donald Trump's properties Letitia James is about to take - eviltoast
  • michaelmrose@lemmy.world
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    8 months ago

    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?

    • MNByChoice@midwest.social
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      8 months ago

      The government forces the sale and facilitates, they do not take the face value. This can be a real shit show.

      A smart person should never allow the government to do the sale. These things should have been for sale months ago.

    • Maggoty@lemmy.world
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      8 months ago

      The government gets the money from the sale. If the sale is worth more than he owes the government, then he gets the extra. Trump is left to pay the loans off himself.

      If this is as bad as the newspapers are saying then his creditors are already counting everything up and waiting for him to miss a payment so they can take whatever the government doesn’t. In some states they may be able to use this fraud ruling to demand the entire loan amount back immediately.

      • michaelmrose@lemmy.world
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        8 months ago

        I do believe the people previously loaning money on the property get paid BEFORE the government so the net effect of seizure isn’t seizure FROM innocent parties. So if he owes 100M on a 80M property I’m wondering if the seizure goes through at all as there is no value to seize. if he owes 80M on a 100M property the government gets the 20M and keeps taking his shit. I suspect that the government ends up seizing a broad swath of property and holds it while they figure out what they have actually gotten and it takes months to actually shake out. I think if he’s under water he’ll end up losing it by virtue of being under water in the loan. In WA understandably a different state this is an issue with commercial property. If its revalued at less than the loan the loan can be called.

        • Maggoty@lemmy.world
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          8 months ago

          I’m sure it’s all very complicated. I was just talking about the simple facts we’re all here to celebrate.

      • jkrtn@lemmy.ml
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        8 months ago

        I’d like to see Donald send his Trumpanzee cult against the banks. We’ll see the justice system magically start working, and swiftly, if he endangers billionaires or their profits.