Donald Trump's real estate is saddled with at least $200 million in debt

Former President Donald Trump has several loans on his real estate holdings worth at least $200 million, which could lower their value and make them less likely to be seized to offset the cost of his legal fines.

The former president has until March 25 to find an interim bail amount or New York attorney Letitia James could begin seizing his assets and real estate after Judge Arthur Engoron ruled that the former president must pay an estimated $355 million in fraud penalties.

In February, it was alleged that Trump and senior Trump Organization executives inflated the value of its assets to get better terms from lenders and insurers.

Lawsuit and seizure of real estate

The lawsuit filed by James originally sought $250 million in compensation, but she increased that amount to $370 million plus interest. The final amount with interest is more than $464 million.

However, this week, the former president's legal team said that paying the civil penalty for fraud in full is a "practical impossibility," speculation has arisen that James may soon begin seizing his real estate.

If that happens, Trump has loans on several properties that could affect their value, according to 2023 financial reports from the government ethics office obtained by Citizens for Responsibility & Ethics in Washington (CREW). One is a mortgage on Trump Tower, taken out in 2012, for more than $50 million. Another on a private Seven Springs estate, taken out in 2000, worth between $5 million and $25 million. There is also a mortgage on 40 Wall Street for more than $50 million. James said these properties have "false" and "deceptive" values and could be seized. In total, all the properties listed in the reports total more than $200 million.

A request has been made on behalf of Newsweek to email Trump's spokesperson for comment on the matter. If the properties are not seized, there is speculation that Trump may be forced to sell some of his real estate to pay the fine issued by Engoron.

In a post on his Truth Social account this week, Trump criticized Engoron's ruling and said he may have to sell his real estate at low prices to find the amount of the security deposit.

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