Quote:
Originally Posted by mostpost
I don’t know if that’s true or not. The crime is that Trump misrepresented the value of his properties in order to obtain larger loans at more favorable rates. That is illegal. As for the banks doing due diligence, if Trump was a favored customer they may have just taken his word-dumb as that may be.
|
There was a time when banks were giving "no-income-verification" mortgages. If one's credit rating was decent, banks took on the risk. A bank loan is always a RISK to the bank. "Rates," more favorable or less so, are based on credit rating; property value usually plays a lesser roll.
Whatever the basis for a bank's decision to grant a loan, their only concern is that the CONTRACT be honored, i.e. paid in full, even if not on time. Banks renegotiate loans, when necessary, and even if ultimately not paid in full, they don't (and can't) bring a "criminal" case against you for a bad debt. Debtors' prison has long been defunct. What they can do is confiscate the "collateral" (the properties) that the loan was based on. The recovery value of the properties would be at present value, not what its value was determined to be at the time of the loan. Real estate values fluctuate almost on a daily basis. That is it!
In reality, James' claim for bank fraud is none of her business, even if true. A contract was agreed upon, the debt was, apparently, paid, and both parties had no complaints, misrepresentations, if any, or not.
