A new $350M ruling against former president Trump provides a fresh big warning, as well as hope for homeowners on Long Island.
It doesn’t matter whether you’ve been a fan or hater of the former president and business mogul, the lessons are the same.
The beginning of February, finally saw the culmination of one court saga against Donald Trump. Resulting in hitting him with a $350M financial penalty. This judgment seems to be a lot about how he valued his real estate assets. Including for obtaining mortgage loans.
The outcome could be both good and bad news for property owners in NY and across Long Island.
A Warning For Homeowners
Shark Tank investor Kevin O’Leary has vocally slammed the judge’s ruling in this case. Calling it ‘un-American’, and dangerous for real estate owners in New York.
It reminds us that property values are merely an opinion. One which can change, and is subject to different perspectives and motives.
This was a common issue back in the last great recession of 2008. In the run up, banks often happily overvalued properties to originate more mortgages, and make larger loans, for more profits. Then, when things got tougher, they often tried to back pedal and revise their property valuations. In turn cutting off home equity credit lines, and threatening homeowners who did not pay off their loans immediately.
Be cautious that you are not caught up in similar circumstances.
Hope For Homeowners
The flip side of this brings hope for Long Island homeowners who have been overtaxed, based on overinflated valuations for years. It could finally mean that there is hope there will be accountability and a reckoning coming in the near future.
If private citizens and public figures cannot get away with overinflating values, then neither should counties.
Yet, until now, it has been openly admitted that around 48% of all annual tax bills are flawed and incorrect.
What You Can Do Now
Be cautious in the loans you get, and how much equity you maintain in your home.
Appeal your property taxes now. It may not change the system yet, but keeps on the pressure, and provides constant documentation of this fraud and poor conduct. You can still save by challenging your own individual property taxes, and hopefully help bring big change too.