Posted by hg(nyc) on December 05, 2000 at 08:52:10:
Then I would have understood about the credit line.
I do not operate with a credit line. But I believe that funds would not entirely dry up. They may require higher margin in the account or reduce the collateral to loan ratio. And if your credit line is with a real bank then maybe you should check out a brokerage company like M-Lynch or any of them that really understand asset lending.
Keep in mind one of the main underlying issues with Breen. They bought everywhere; Camden, East Orange, Newark, not higly desirable or higly “redemptive” areas. This ofcourse reduced the amount of redemptions and increased the amount of “stuck” money.
BTW, I am going to make a few calls about that technical solution I mentioned to you.
Posted by JHyre in Ohio on December 04, 2000 at 12:46:33:
Sloppy Tax Lien buyer + liberal legislature/judges = big honking punitive damages. Read all about it in Thursday 11/30 Wall Street Journal, front page, right side.
Good news for us…bad for the industry (long) - Posted by Ben(NJ)
Posted by Ben(NJ) on December 04, 2000 at 14:02:11:
This has been all the scuttlebutt around here lately.
Breen is one of our biggest competitors and they are getting slammed. It gets worse every day as more of these installment plans surface. However, as always, there is more than meets the eye. Bret Schundler, the mayor of Jersey City is said to be planning a run for governor. Is it coincidence that all this negative press is being stirred up? Also, although I have followed the letter of the law and never entered into
an installment plan with a property owner,(although some have begged me to do so) as Doug Breen said, this is truly the only option some people have to hang on to their home. This judge has effectively put a stop to that.I basically have to tell people almost every day that it is all or nothing, pay the entire debt in one lump sum or we must proceed with the foreclosure. Of course, there is no excuse for the overcharging. They were getting the maximum rate of 18% for god’s sake. Shame on them for bumping it up further. I would be very interested in other people’s comments and viewpoints. As I said this may be good for my company in the shortrun but I am worried that institutional lenders may get spooked.
Re: Good news for us…bad for the industry (long) - Posted by hg(nyc)
Posted by hg(nyc) on December 04, 2000 at 21:33:20:
Why would an institutional lender be more spooked than they already are? They can redeem the lien any time they wish if they want to accelerate their seniority.
18% in NJ. It should be progressively higher and or penalties should begin alot earlier. Which scares you most, 9,000 Volts of electricity or a big brite sign that says DANGER 22,000 VOLTS. But the homeowner should be more educated as to the liability they could incur. The attitude towards property taxes has always been lax anyway.
And the real cost to other homeowners is even higher. What about the cost of all the salaries for administration to collect and manage those taxes.
Posted by Ben (NJ) on December 04, 2000 at 22:12:37:
I, and some of my larger competitors, have revolving credit lines with institutional lenders who loan money to us using the tax liens as collateral. This helps with the cash flow since the liens are basically illiquid. If these lenders get spooked by litigation and large punitive damages and the funds start drying up, alot of people will be out of business.