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April 18, 2007
Foreclosures of the Week: Bed Stuy Doubleshot
The three-story house at 824 Monroe Street on the eastern edge of Bed Stuy has a can't be worth a whole lot more than the lien of $393,998; in fact the history on this place looks a little fishy: The house changed hands for $383,000 in February 2004, with the buyer getting a mortgage for $377,072 at closing. Just a few blocks away on Bainbridge Street, another three-story house has an almost identical lien of $397,513. We haven't seen either of these places but it's hard to imagine either of them selling for a whole lot more than $500,000, dontcha think?
824 Monroe Street [Property Shark] GMAP
543 Bainbridge Street [Property Shark] GMAP
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Comments
can you say mort. fraud
Posted by: donnie baseball at April 18, 2007 10:50 AM
If they are worth more than the loans then why didnt the guy put them on the market...
Wouldnt they have to be worth less than 400k?
Posted by: michaelcampion at April 18, 2007 10:54 AM
I am confused why this suggests mortgage fraud. Can someone explain?
Posted by: Anonymous at April 18, 2007 11:09 AM
how can the lien be higher than the original mortgage for over 3 years ago? maybe i don't understand the foreclosure process, can somebody enlighten me?
and even though these houses are almost all the way to bushwick, if they were put on the market i bet they'd ask for over 500K. i've seen plenty of listings in this area for far worse-looking houses. heck, the fugly fedders house across from my home is asking 850K! of course they may not get the asking price.
Posted by: Jimmy Legs at April 18, 2007 11:40 AM
"how can the lien be higher than the original mortgage for over 3 years ago? maybe i don't understand the foreclosure process, can somebody enlighten me?"
well jimmy i believe the "owner" may have gotten a heloc after getting a fraudulent appraisel of this pos and taken out another mort.
and never paid a dime
aint re grand
this is why re is a house of cards
Posted by: donnie baseball at April 18, 2007 11:59 AM
Where is typekey? Does anyone know what happened?
Posted by: Anonymous at April 18, 2007 12:47 PM
If the owner took out a HELOC (home equity line of credit) it would have been a different note and been second in line. Mortgages seldom get bigger unless they are an option-ARM or neg-am. This could be one of those beautiful products...
None the less if the property really increased a hundred K then the guy would sell it and make a profit... something is definitely off...
Posted by: michaelcampion at April 18, 2007 1:38 PM
A mortgage lien can also grow if the borrower defaults on interest payments and the interest piles up.
Posted by: Anonymous at April 18, 2007 3:18 PM
Mr B.,
I know you are scared about your property values, but Is it time to have a real, honest discussion about the sub-prime market and how it is going to affect the mostly black, mostly working class neighborhoods of FG/CH/BS/CRWHTS???
Posted by: Anonymous at April 18, 2007 6:40 PM
I'm not getting the gist of these posts. If these townhouses went on the market today, they would get more than 400K easily. We're talking about three story townhouses in Brooklyn afterall, not some far off corner of Albany. Assuming a gut reno (not a luxury reno mind you) with the basics of plumbing, electric and flooring, I would guess you could renovate these houses and make a profit afterwards with a price in the mid to high fives.
Why are we assuming mort. fraud? 397K sounds about right for these properties back in 04. The owner probably couldn't keep up with the payments, didn't have the tenacity to tough it out by renting out the place, or perhaps just gave up. Happens all the time.
I'm just surprised at the lowball figures being given for these properties when you can easily look up the comps in the area: 500K and up.
On another note, I think the subprime mortgage problem is overhyped, most of these homeowners will be propped up by steady property values, they will pay for another round of closing costs in the end but they will simply switch to a fixed rate 30-40yr loan. Those that are forclosed upon will simply be taken over by homebuyers taking advantage of the bargains. Again, this is New York City we are talking about.
Posted by: Antoinne Roquetien at April 18, 2007 10:38 PM
I'm not sure I understand why people are calling "mortgage fraud" on this one either. If the mortgage was substantially higher than the value of the house, that would be one thing, but otherwise?
Posted by: bill_stickers at April 19, 2007 5:14 PM
All very interesting. I actually met the woman who owns or should I say used to own the house on Bainbridge. She was at the courthouse today waiting for the foreclosure auction. I happened to be there on jury duty and asked her if she had ever been to a foreclosure auction and what was it like. SHe ended up telling me that someone told her they would help her get out of foreclosure and they haven't been paying the note and now she is afraid she will lose her house. I told her to see a lawyer right away because something seemed fishy. She is a very very sweet older woman who obviously got conned. She was with good reason frightened that her home would be taken away. Now that I see the Property Shark report it seems clear that "Johnny Hicks" may have done some sort of strange mortgage thing. I don't understand the reports enough to understand it, but it is odd that it goes from Mary (whom I met) to Johnny to Carmen. There is no Option One Mortgage satisfaction of mortgage. So, it seems that somehow, there is a mortgage for 390K under Mary's name and 455K under Carmen's name and Johnny may have sold the whole thing and never put a dime down? I'd love some help with reading this.
Posted by: cc at April 19, 2007 11:55 PM
one more thing, on the Monroe Place, it seems clearer, and that
alton bought it from Unchained REalty, sold it/borrowed from Equicredit, but I see no "satisfaction of mortgage" for Equicredit and no deed for Equicredit. Then somehow, Robert Kern has the deed, and has sold it to Better Homes (probably a "we buy any home" co.) who sells it to Selena Montague who has a mortgage with Alliance. So if anything was owed on Equicredit the loan which may now be owed by Goldman Sachs would be worth knowing, because that would be on top of the mortgage the Selena has of $377K assuming they are up to date on their taxes and all other payments and possible liens. Thus the reason to do a Title Search on any property you may buy on foreclosure.
Posted by: cc at April 20, 2007 12:08 AM
oops, to my post at 11:55, Option One has a satisfaction of mortgage on 10/14/03 and it seems then that Mary was paid something and then Johnny owns it though it says "Deed, other" and sells it to Carmen, so maybe the total owed is the $455K plus any other outstanding bills, property tax, Home Heating Oil is mentioned, but I don't understand that, etc. Johnny still listed as contact. Mary seemed to still be living there.
Posted by: cc at April 20, 2007 12:21 AM
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