2019-07-01 DSP doesn't pay his property taxes in CT -

[James Smith]

https://www.mytaxbill.org/inet/bill/home.do?town=stratford

6 days late. Has the bankruptcy saga begun? Discuss.

EDIT: To be fair, he was a near month late in paying for 2014, 2015, and 2016. He was two weeks late in paying for 2017.

 

[Prince Lotor]

I thought people said the bank normally has property tax payments set up to be paid out of the mortgage payments automatically. Could the bank be fucking with Phil for not making his mortgage payments and being dumb enough to call and tell them "fuck you, I'm not making payments anymore! I'm tired of it, and you are stupid if you don't let me off the hook and immediately take possession of the property. I used to have your job ACK ACK ACK"?

Edit: Also, does that say the CT condo is currently assessed as being worth $41,440? The bank loan he's on the hook for is for like triple that lol

 

[RemoveKebab]

I thought people said the bank normally has property tax payments set up to be paid out of the mortgage payments automatically. Could the bank be fucking with Phil for not making his mortgage payments and being dumb enough to call and tell them "fuck you, I'm not making payments anymore! I'm tired of it, and you are stupid if you don't let me off the hook and immediately take possession of the property. I used to have your job ACK ACK ACK"?

The mortgage payment includes taxes which is stored in escrow until the taxes are due.

I am no expert but the fact he is past due on his property taxes is telling.

 

[Prince Lotor]

The mortgage payment includes taxes which is stored in escrow until the taxes are due.

I am no expert but the fact he is past due on his property taxes is telling.

That's what I thought, I guess this could be decent evidence he's really going through with his 'Fuck you, I'm not making mortgage payments anymore because I don't feel like it' plan if it goes unpaid past August 1st. These are taxes he owes the government though technically, could this situation be complicated by already being on a payment plan to the IRS for unpaid taxes?

 

[Tookie]

Edit: Also, does that say the CT condo is currently assessed as being worth $41,440? The bank loan he's on the hook for is for like triple that lol

Assessed values are for tax purposes and in some localities come out to a fraction of the sale price. Completely separate from appraisals and anything involving the sales process.

 

[Exceptional Chimp]

Correct. Property taxes are typically included with the mortgage payment, collected monthly and paid quarterly. If he stopped making payments the tax escrow will soon be depleted and the city is going to be saying "bitch better have my money".

The assessed value is typically a fairy tale created to keep residential property taxes low. It has little or nothing to do with actual property value.

Now since this is a condo there is also a homeowners' association that needs to be paid. That is usually paid directly by the owner, so guess what? Phil has ANOTHER hand pimp slapping his gouty face.

 

[actually]

Correct. Property taxes are typically included with the mortgage payment, collected monthly and paid quarterly. If he stopped making payments the tax escrow will soon be depleted and the city is going to be saying "bitch better have my money".

Not for nothing, but my home's property taxes are collected monthly (built in to the mortgage payment) and paid annually. That's also when the minimum monthly mortgage payment is readjusted to deal with any changes in property tax due.

I think we would be well-served to wait until at least August 1 before jumping to any major conclusions.

Edit: Yeah, looking at 2018's payments, the payment due 7/1/18 was paid 7/19/18 and the payment due 1/1/19 was paid 1/22/19. Both were paid without any apparent penalties. It's waaaay too early to say anything.

 

[Gout of Redemption]

This seems like a big jump to conclusions, he might have been late on his bi-yearly payments, but based on what was posted he has still payed them within the grace period and has therefore incurred no negative penalties of it. Now if this goes on until August then we might have another juicy drama segment, but based on his payment history I think it's safe to say near the end of the month is when he will pay up

 

[Sparkletor 2.0]

Phil should just debunk this.

Okay ladies and gentlemen, listen to this. This is how dumb trolls on the internet actually are. The new WHITE HOT detractor meme is, "Phil owns a condo in Connecticut and isn't paying the mortgage anymore". WHAAAAT? How stupid can you be!? I live in Washington state! How can I own a condo in Connecticut and live ACROSS THE COUNTRY? It makes zero logical sense! These people... these idiots just make shit up! THERE NEVER WAS A CONNECTICUT CONDO! If these morons did five seconds of research they would see that! I don't live anywhere close to Connecticut! Ack ack ack! Okay FrogsGolfingDolfinLogs cheered with something stupid, "Phil there are hundreds of videos of your Connecticut condo" umm no! Wrong! Enjoy your ban.

 

[Kosher Dill]

 

[That Hedonist Nerd]

Not for nothing, but my home's property taxes are collected monthly (built in to the mortgage payment) and paid annually. That's also when the minimum monthly mortgage payment is readjusted to deal with any changes in property tax due.

I think we would be well-served to wait until at least August 1 before jumping to any major conclusions.

Edit: Yeah, looking at 2018's payments, the payment due 7/1/18 was paid 7/19/18 and the payment due 1/1/19 was paid 1/22/19. Both were paid without any apparent penalties. It's waaaay too early to say anything.

Yeah, our PMI has been late to payout taxes before.

Plus, the only way defaulting on his mortgage would actually be beneficial is if he also declared bankruptcy.
He's still pretty young, plenty of time to get the credit to rebound. Not to mention, after its filed your credit score goes up between 50 - 100 points a month for 4-5 months lol,

 

[MG 620]

The "grace" period is his "begging for random strangers to pay it for me" period.

 

[soft kitty]

Who cares. property tax is theft.

 

[TheKatIsNowGone]

Phil should just debunk this.

Okay ladies and gentlemen, listen to this. This is how dumb trolls on the internet actually are. The new WHITE HOT detractor meme is, "Phil owns a condo in Connecticut and isn't paying the mortgage anymore". WHAAAAT? How stupid can you be!? I live in Washington state! How can I own a condo in Connecticut and live ACROSS THE COUNTRY? It makes zero logical sense! These people... these idiots just make shit up! THERE NEVER WAS A CONNECTICUT CONDO! If these morons did five seconds of research they would see that! I don't live anywhere close to Connecticut! Ack ack ack! Okay FrogsGolfingDolfinLogs cheered with something stupid, "Phil there are hundreds of videos of your Connecticut condo" umm no! Wrong! Enjoy your ban.

Accurate, only thing that was missing was him calling the guy who pointed out the ConCondo videos didn't get called a crazy stalker.

 

[DiabeticSP]

The day after DSP forcloses due to bankruptcy when he wakes up to still owing the difference will be the best day in this saga.

Banks treat shit like mortgages like they're written in blood and collateraled with a human soul. You don't just 'tee hee, guess I can't pay' a bank loan.

The second they smell blood in the water those fuckers are gonna line up with copies of his signature in hand going "where's my fucking money" until the bankruptcy court gets bored of flogging the pinata to make pennies come out.

Seattle is no California, but they can't take your primary residence or car as far as I'm aware, but they can run a number on anything else of value attached to your name.

Phil cannot file for Chapter 7, straight up impossible.

So that leaves Chapter 11 or 13, basically debt reorganization or a payment plan. However, he's on a payment plan already.

My understanding is that fucking up the payment plan (in general) causes the IRS to bill you the remainder and demand it out of pocket, plus penalties originally waived.

So even if he gets another bankruptcy payment plan, it looks like they'd roll his current tax debt into it, then slap a lein on that shit where he is forced to pay on time. No 'muh bills' about it, he gets a flat number that is automatically forced away from him every month until the debt's done.


Pay your bills on time and don't take out two mortgages, kids.

 

[That Hedonist Nerd]

The day after DSP forcloses due to bankruptcy when he wakes up to still owing the difference will be the best day in this saga.

Banks treat shit like mortgages like they're written in blood and collateraled with a human soul. You don't just 'tee hee, guess I can't pay' a bank loan.

The second they smell blood in the water those fuckers are gonna line up with copies of his signature in hand going "where's my fucking money" until the bankruptcy court gets bored of flogging the pinata to make pennies come out.

Seattle is no California, but they can't take your primary residence or car as far as I'm aware, but they can run a number on anything else of value attached to your name.

Phil cannot file for Chapter 7, straight up impossible.

So that leaves Chapter 11 or 13, basically debt reorganization or a payment plan. However, he's on a payment plan already.

My understanding is that fucking up the payment plan (in general) causes the IRS to bill you the remainder and demand it out of pocket, plus penalties originally waived.

So even if he gets another bankruptcy payment plan, it looks like they'd roll his current tax debt into it, then slap a lein on that shit where he is forced to pay on time. No 'muh bills' about it, he gets a flat number that is automatically forced away from him every month until the debt's done.


Pay your bills on time and don't take out two mortgages, kids.

He can't file chapter 11, since that's for corporations only and he isn't a corp

 

[DiabeticSP]

He can't file chapter 11, since that's for corporations only and he isn't a corp

I believe because Phil is an 'operating business' it is possible for him to declare chapter 11.

There are also reasons Phil might qualify as an individual, since he makes too much money for the means test of chapter 7 but (god I hope) is below the threshold where you have to go chapter 13.

Filing Chapter 11 Bankruptcy – How it Works & Who Can File

Learn about Chapter 11 Personal Bankruptcy & Business Bankruptcy, how Chapter 11 differs from Chapter 7 & Chapter 13, & how it can help you get out of debt.

www.debt.org

Spoiler: Relevant Text

Chapter 11 Personal Bankruptcy
So why would an individual choose Chapter 11? It’s a viable option if they A) don’t want to liquidate all their assets in Chapter 7, or B) have too much debt to qualify for a reorganization plan under Chapter 13.

Your debts can’t exceed $1,184,200 in secured debt (mortgage, car payments) and $394,725 in unsecured debt (credit cards) in order to qualify.

That’s why celebrities and pro athletes often file Chapter 11. Real estate investors also find it handy since it allows assets to be written down.

For instance, if you own a property worth $98,000 but owe $150,000 on the loan, you can reduce the principle balance of the mortgage to the value of the property. So your new mortgage number would be $98,000.

Chapter 11 also allows you to reduce the interest rate and extend repayment terms. That would mean lower monthly payments

 

[James Smith]

He can't file chapter 11, since that's for corporations only and he isn't a corp

Sole proprietors can file under Chapter 11 if they want. Under Chapter 13:

• you have to deal with a trustee
• you have to close all your bank accounts and re-open them debtor-in-possession
• pay a lower filing fee (about 80% less)
• are heavily scrutinized for unnecessary spending
• pay creditors for no more than 5 years
• creditors do not vote on the plan but may object

Under Chapter 11:

• you don't have to deal with a trustee unless you seriously fuck up
• you can keep your accounts open
• pay a higher filing fee (about 4x more)
• are less scrutinized for unnecessary spending
• pay creditors for as long as the plan says
• creditors vote on the plan

That final bullet point is a big problem when you have a lot of unsecured debt. In order for your plan to be approved it has to be approved by a majority of your creditors* or the creditors* who have a right to two-thirds of your debt. These creditors could refuse to approve your plan unless you extend it for longer than five years. What happens if these creditors say "If you extend your plan to 15 years I will vote to approve it." You're fucked for 15 years unless you can "cram" the plan down which is a complicated process (read: your lawyer is going to charge you more money.)

* When I say this I mean creditors who vote. If you owe 100 people money and only 10 vote, you only need 5 approval votes to get approved. If you owe $200 and the people who vote have a right to $100 of your debt, you only need $67 of approval votes to get approved.

 

[Kosher Dill]

Someone should go and buy up Phil's defaulted debt once it's worth pennies on the dollar, then attempt to collect in "creative" ways.

 

[ReentryPhantom]