“Time is money,” Benjamin Franklin once famously said, creating one of the most enduring adages in the American business world.

The cliché, of course, refers to the opportunity cost of lost time and to the ideas that costs are incurred as time passes and that revenue cannot be generated through idleness.

A key take-away from the phrase is this: the longer something takes in the process, the more it costs.

Specifically in cases that involve liquidating a company’s assets, an equally important corollary comes to mind: the longer it takes to liquidate an asset, the lower the recovery will be.

 Performing tasks in parallel rather than in sequence is a method often used by healthy businesses to get more done sooner. 

This same method of operating works in adverse situations, too.

Sidney Turner

www.SidneyTurnerllc.com

A DLOM’s basic premise is that shares of a closely held corporation cannot be readily sold on a public market and therefore should be discounted to reflect the additional risk factors associated with the time and difficulty of finding buyers for non-publicly traded shares.

Sidney Turner

www.SidneyTurnerllc.com

Controlling owner or partner of closely held company buys out interests of non-controlling owners who subsequently sue for damages raised for example by the general partner of a real estate limited partnership who misled the limited partners into selling him their interests at a price far below market value. It can be argued that damages can be calculated as the difference between the actual sale price and the value of the asset or interest at the time of the trial or at the time of the transaction at issue.

Sidney Turner

www.SidneyTurnerllc.com

Some homeowners in the struggling economy who have found that falling real estate prices have brought the value of their homes lower than the mortgage debt that they owe on their property, known as “underwater” mortgages, have responded to this unusual situation by simply trying to cancel their mortgages and move into more affordable homes.

Many of the debtors who choose to default on home mortgages don’t seem to consider or even realize many of the consequences of this action, especially that they are still responsible for paying the balance of their mortgage even in cases of default and that they cannot simply walk away from their obligations. They are liable to legal action from their creditors if they do not make their payments while actually having fewer legal options than some other debtors.

The threat of legal action is only one of several possible ramifications debtors face for voluntarily defaulting on a mortgage; other adverse affects include ruining their credit and facing the possibility of being forced into filing for bankruptcy to escape their obligations. If you would like to learn more about the issues related to “underwater” mortgages and homeowner’s options please refer to http://online.wsj.com/article/SB125902556993561567.html and if you have any questions or want additional information please visit us at Sidney Turner, LLC.

Borrowers are getting the opportunity to turn the tables on bank creditors. The recent financial engineering and resulting financial instruments required by the securitization of mortgages has created a defense to the lenders attempting to foreclose on those defaulting borrowers.

On Oct. 9 in federal bankruptcy court in the Southern District of New York. A judge ruled that a alleged lender, PHH Mortgage, hadn’t proved its claim to a delinquent borrower’s home in White Plains, Judge Robert D. Drain wiped out a $461,263 mortgage debt on the property. That’s right: the mortgage debt disappeared, via a court order. If the lender can’t come forward with proof of ownership, then borrowers may have a stronger argument in court and, may even be able to stay in their homes mortgage-free.

Securitizations allowed for large pools of bank loans to be bundled and sold to legions of investors, but some of the nuts and bolts of the mortgage game — notes, for example — were never adequately tracked or recorded during the boom. In some cases, that means nobody truly knows who owns what. Click here to learn more.