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.

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14 Responses

  1. With the current number of foreclosures, a lot of people ask, “Where are properties for back taxes in my area?

  2. And this surprises who???

  3. Does that mean we can rename our streets and library since he has pretty much destroyed this city?

  4. Disregard previous comment…that question was already asked. :)

  5. I think this whole thing will have to play out, sounds like 5/3 is trying to stick it to him, I have lost 15,000 to 20,000 on my home value I hate to see what Shreibman books look like. But for me personally I would love to see the Weekly rental properties go away, but Shreibman did build a nice retail space behind Regions Bank.

    Is his company construction doing the work on Waldon Road?

  6. looks to me that there was another $103,000 water bills write off for the year of 2007. WOW!!!

    http://pubrec.lavergne.org/Weblink8/0/doc/106867/Page1.aspx

    • I can understand the non-collectibility of bills from deceased or bankrupt people, but what the he** is the deal with the other 13 pages of people?! Did they all just skip town and not pay their last bill, or what? I wonder what effort has actually been made to collect this money. I know very little about collection laws, but it seems like there should be more recourse than just shutting off the water . . . slapping a lien against the property, perhaps?

      I’d love to hear some comments on this!

  7. Sherry,

    Its a yearly thing for old past due water bills to be written off. Some say that its none of my business but you know its everyone’s business for its posted on the city’s website for all to see.

    I hear some at city hall think this site is just TRASH, TRASH, TRASH, and Lies, lies lies. well you know what its not all lies lies lies people. information is made public online at the city’s website so for those of you that sit in city hall and say this site is lies lies lies get over yourselfs.

    sorry i was on my soapbox!!

  8. The reason so many water bills are written off is the city does NOT require new customer deposits. If you read through the typical list of water writeoffs you will see most are below $75.00. If the city required a REFUNDABLE deposit of say $50 for those getting just water and $75 for those on sewer, and $200 for businesses; these writeoffs would almost completely end

    Not to mention the money from deposits would have to be held in a seperate bank account that could be drawing interest and helping to pay for the things we need more cops, more firefighters, a community center.

    • Problem with that is you can’t use money from water and sewer funds to pay for cops, firefighters or a community center. The main source of funding for general fund expenses is property taxes. We have the lowest in the county and you get what you pay for. If you want more cops, firefighters and a community center, everyone is going to have to pay more property taxes. It’s been needed for years.

    • I believe the city does require a deposit, if you can call it that.

      I had to put down a $50 non-refundable deposit along with filling out a page full of information with signatures before I could even have our water turned on. It was the most paperwork and money and I’ve ever had to complete or spend before I could simply get water turned on. That was a couple of years ago. Has anyone else had to do this?

      It’s pretty frustrating, especially when you have to do it during whatever hours city hall happens to be open and deal with whatever payment terms & fees they have available.

    • All I can say is this….

      Auditors will be in the water dept next week for the yearly audit so I wonder how that will go.

      hmmmmmmmm

      “I’m such a nice person!!”

  9. As a former city employee, I very much understand that water money goes to water. But if general fund money does not underwrite water then that money can be used for general services.

    As for the money you pay when you get service, that is a service hookup fee. We need a deposit that covers the final bill when people leave. Due to foreclosures and high number of rental homes, lots of people simply walk away from bills if they do no relocate somewhere else in La Vergne. If the deposit is too much for a person to pay up front then it could be prorated over say the first four months of bills.

    As for the tax rate, we have one of the lowest in the state for a city of our size. We should have MTSU do a survey of what the citizens want and then take appropiate action within what we want.

    If we see where our money goes most people will not objest. As an example my city property tax is 33 cents a day. $120 dollars year.

    I can argue that if the taxes were doubled and certain services were added or enhanced, if non-residents paid properly for use of city services, and if officials were not concerned most with reelection, ,,,,,,that when your total expenses were evaluated that you would not spend as much money on your property.

  10. I know for a fact and yes it is a fact so some in the water dept cant say its lies, that the person I know has collected over $7,000 in about 6 months of past due water bills from people that come back in to hook up service again from when they left. She started this on her own and we should praise her for this because she is trying to get the money back from these people. If you go to the water bill write offs on the city’s website you will see that there were several times that the MusicCity Campgrounds was wrote off for thousands of dollars. this is all true because it’s posted online from the city so those that say this site and comments on this site are lies, and trash, better go back and do YOUR homework and get over it. You will be loosing a great employee at the end of the month because you don’t know how to treat someone. I just hope in time that you will learn to treat others like you want to be treated!!!

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