Why isn't a lien against Trump properties sufficient?

[Pototan]

The half billion-dollar judgement against Trump for Fraud may not be bonded, leaving the State of New York the right to start acquisition proceedings.

My question to people here at DU is why can't a lien be placed on all his New York properties and remain there until the total amount is collected, if Trump loses his appeal? It would act kinda like if a person had a tax lien against his property.

[Irish_Dem]

1. I think they may be working on some sort of deal like this?

[msongs]

2. tv talking heads say there are escrow account options besides having to sell off to get cash. trump wants everyone

to think he has to cash out but that is of course bull

[Silent Type]

3. Something like that will likely be worked out short-term. Doubt NY wants to untangle

what has to be a huge financial mess.

They could also require trump to turn over whatever rights he has as necessary to fulfill judgement.

[marble falls]

4. My folks were bankers and one time I was asking about car loans and asked why they didn't OK just about ...

... any car loan request because if the loan isn't paid, they'd just repo it and sell it. My dad said, "because we aren't in the business of repoing or selling cars or houses. We're in the money business. Our only concern is moving money.

Besides, bankrupts aren't good risks. The requirement is for a dearer collateral - negotiable bonds, bearer bonds, cash, CoDs, 40 Wall street is not the asset TFG says it is, he does not own it.

[unblock]

5. Also for car loans, they usually are upside-down for an 18-24 month period

Cars go down in value quickly, then level off.

Loans stay high at first (because so much of each monthly payment goes to interest when the principal is high) then plummets at the end (when there's very little interest to pay so the payment goes almost entirely to principal).

Car loans typically start off with only 10% down payment, so this often disappears after the first year. The car loan is then more than the value of the car for 18-24 month until principal reductions finally get the outstanding balance back below the value of the car.

Meaning they lose money if they have to repo during that time, even ignoring expenses and even if the car is still in good condition.

[mopinko]

9. it loses 10% when it drives off the lot.

i never have and never will buy a new car for just that reason. a 1-2 yo lease return is the best value.

[Kennah]

6. This is my understanding

Let's say there's a building TFG owns that is worth a million dollars.

$600K first mortgage
$200K second mortgage
$100K third mortgage

Technically, there is $100K of equity to go after, but if it were seized and sold, what if it only fetched $890K?

If the state of NY put a lien on it, they'd now be in the fourth lean holder position--so the first, second, and third get paid first.

[PSPS]

7. They're all completely leveraged and collateral for other debts. Trump has no equity left nor any real cash.

[Meadowoak]

8. Exactly, that's why 30 bond companies said no.

[mopinko]

10. he cd if he wanted to. the bond cos might not want it, but james wd b happy to take it.

he absolutely cd give the state of ny a lien against any property w enough equity. but that wd require an honest appraisal, and that’s the last thing he wants. it wd also require an honest accounting of his debts on said property, tho the overseer already has that. it wd b in the news, tho.

i think the thing he dreads most here is any of his properties being sold on the open market. their true value wd b out there for the whole world to see.

[MissMillie]

11. My guess

I'll bet his properties are already subject to liens.

[Happy Hoosier]

12. They might work out somethng like that, but that's not what the law says....

In the absence of the bond, the judgment is executed. That's what the law says. Liens aren't payment. They are just a claim. The People of New York are entitled to payment of the judgment without the legally required bond. No other defendant would get special treatment. Why should Trump? This isn;t friggin' JD Wentworth.