Sinking

[Wesley]

Tiger Woods gets some very bad news before the PGA. Reports say that the house is worth just 2 million dollars but we find that hard to believe. Tiger’s ex-wife holds a $54 million-mortgage on the house! That means that Tiger has to take care of the place. The soil in Florida is conducive to houses sinking.

So how do you get a $54M mortgage on a $2M house? Any experts out there?

 

[Clonehomer]

Wait, so Tiger owes $54mil to his ex, or his wife still has a mortgage on the house his wife owns? Either way, I'd be getting a lawyer to discuss repercussions of walking away from the property.

 

[Judoka]

So how do you get a $54M mortgage on a $2M house? Any experts out there?

I'm guessing the house sinking (and sounds like the foundation is cracked) probably puts a big damper on the house value.

 

[19210]

I'm guessing the house sinking (and sounds like the foundation is cracked) probably puts a big damper on the house value.

That's what they get for building this huge structure on swamp land. Basically a crap shoot every time somebody builds next to any type of water. I'm not an engineer, but I did sleep at a Holiday Inn Express last night! :SLEEP:

 

[TRZA]

I think I see a metaphor in here somewhere, but I don't know. Can somebody help me out?

 

[LawyerClone]

Odds are that is not the only property or asset secured by the mortgage. In other words, instead of placing 10 mortgages on 10 pieces of property all at appropriate value, the whole thing is mortgaged and the mortgage can be replaced piecemeal. Think of a real estate developer who creates a new subdivision with 30 lots. There will be one large mortgage on all 30 lots which will be well in excess of the value of any one of those lots.

The other thing is that his ex is not a lender in a traditional sense. If you're owed $54 million and there's only a few million of property, being upside down on it is still better than not having it.