We Don’t Know the Terms

I read with interest the more detailed article in the DNJ about the lawsuit against LaVergne developer Amnon Shreibman.  The thought that I have is we do not know the terms of the loan he took out with Fifth Third.  In a typical home loan, buyers are instructed to not cause harm to the property that could negatively impact the value.  In addition, many lenders ask borrowers to pay taxes in advance (this is one of the “prepaids” in closing costs), then collect an amount each month that goes into an escrow account to be paid when the tax bill comes due.

When prepaid funds are not put into escrow, the lender wants assurance that taxes will be paid so the government entity won’t eventually seize the real estate for non-payment – thereby leaving the lender holding the bag.  This may come as a surprise, but no lender or government entity really wants to seize your home or property.  What a hassle!  And when a government agency does finally act, several years have likely passed.

In Tennessee, we are a non-judicial foreclosure state so it’s much easier for a lender to foreclose – they can do so without the intervention of a court.  However, we go back to the original article regarding the lawsuit,

The loan was scheduled to come due in November 2014, but the couple has defaulted on property tax payments of at least $135,991 to Rutherford and Davidson counties, court documents show.

We don’t know the terms of the loan so really have no say about whether he was in violation of his loan payment or not.  That’s what the lawsuit alleges – specifically regarding the non-payment of taxes on the properties he is using as collateral against the loan.  Fifth Third may be monitoring tax payments because they have a vested interest in seeing that the government does not foreclose due to a tax lien.  Perhaps because the tax payments are late (and this is more common than you’d think), a payment due clause was triggered by Fifth Third.  I don’t know and that’s my point … clearly there are many details than we will ever know.

However, it also looks like Fifth Third may be exercising the extreme cautionary option, due to the size of the loan,

“Based on statements by Amnon Shreibman that he has considered the possibility of relocating his primary personal residence and assets to the State of Israel, the defendants are preparing to remove property, including possible collateral, out of the state without leaving sufficient remaining funds or property for the payment of their obligations,” the lawsuit states.

Like it or not, Mr. Shreibman is in the public eye because of his role as developer.  While his development made the dream of home ownership come true for thousands of people, he has also taken a lot of criticism because of the density of the housing and the quality of the construction.   But I say the city’s overall lack of vision in allowing all those homes jammed in with little green-space, the rare park and playground, absence of sidewalks throughout the city, tiny driveways, and streets so narrow cars can’t park there either is just as much to blame for the overcrowding.

One more thing – speaking of Lake Forest subdivision.  I still don’t see the roving gangs that all the ballyhoo claims.  Any time I’m in the neighborhood, there are people walking their dogs, kids playing, neighbors chatting. Yes there is crime, but isn’t that true for ALL CITIES?  My guess is that the crime is pretty proportionate with the populations. If you have a town of 3,000 there may be a 5 percent crime rate and 5 percent sounds like a lot more when you have 30,000 people.

Okay two subjects here, really.  I have to get to work…  here’s a link to the entire article so you can form your own opinion.

14 comments for “We Don’t Know the Terms

Leave a Reply

Your email address will not be published. Required fields are marked *