« Wednesday Food & Drink Round-Up Development Watch: 75 Flatbush Extension »
May 16, 2007
Foreclosures of the Week
It looks like the most recent owners stretched too far when they used 95% financing to purchase this charming 4-story brick townhouse at 614 Lafayette Avenue in Bedford Stuyvesant. Now there's a lien of $701,233 against the property and it will be up for auction on Thursday. The house on the right, 819 East 35th Street in Flatbush, is remarkable because of the small lien; with only $136,158 owed to the bank and the house easily worth a half million bucks, you'd think that foreclosure could have been averted. Both houses go on the block tomorrow at 3 pm at 360 Adams Street, Room 261.
614 Lafayette Avenue [Property Shark] GMAP
819 East 35th Street [Property Shark] GMAP
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Comments
forgive my ignorance, Mr. B (or anyone else), but how does one go about bidding on foreclosed places like this? Is it all cash? Do they usually sell for less than market value?
Posted by: anonymous at May 16, 2007 11:35 AM
Come on Brown. Imagine if this was your pad being advertised on a blog you had nothing to do with. You're usually not, but this is crass. Remove this posting man.
Posted by: anon at May 16, 2007 11:38 AM
Why remove it? Does the owner get money in excess of the lien after costs are covered for the sale? The more interested, the better for the current owner in default, right? Also, it is public record, so this is just more advertising.
Even if it was not the case that the owner gets proceeds in excess of the lien (which would be odd imo), I think this is useful information.
Posted by: Anonymous at May 16, 2007 11:54 AM
I am wondering since prop. shark is given as a source for foreclosures if you receive remuneration for this or whether you own a piece of property shark.
Everything they do is public record for the asking. If you don't know the city sites I guess they are good. Prices are more off than right on comps.
Posted by: Anonymous at May 16, 2007 11:55 AM
No, we don't receive any remuneration from Property Shark.
Posted by: Brownstoner at May 16, 2007 12:01 PM
The mortgage company makes the money, the owner gets zip. Often these large mortgages on an old house with no mortgage
or a small mortgage is little more than a scam. The owner doesn't even know they are going into foreclosure because they haven't taken out a mortgage at all.
People have written many articles in the local papers about such mortgage parasites. Many of these people have been indicted, sent to fed. detention.
You have read the papers in the last five years.
Posted by: Anonymous at May 16, 2007 12:03 PM
I have no problem with this. What's the issue? I've been interested to know how subprime lending would play out in Brooklyn. (Also note that I don't think subprime lending is necessarily bad... only predatory lending.)
Posted by: Anonymous at May 16, 2007 12:05 PM
Of course the owners get the balance after the bank is satisfied, but if they really bought it with only 5% down, then there is not going to be anything left, in fact there may be a debit. with regard to the house with the small lien, it is very possible that the owner will settle at the last minute, that often happens unless of course the owner is dead, and the heirs are dysfunctional or there are no heirs.
Posted by: anonymous at May 16, 2007 12:07 PM
You are so right, Anon 12:03. It's called predatory lending, and it is a huge problem, especially for senior citizens, or anyone who may be house rich and cash poor, and needs money for repairs, emergencies, etc.
Stricter and better enforced laws and education, education, education are the key to not losing a house that you may have spent a lifetime in, and up until you signed for one of these loans, you owned free and clear.
Posted by: Sterling Silver at May 16, 2007 12:13 PM
At first the posting of the foreclosures seemed cold and crass to me... but then I started thinking that perhaps the posting serves as a warning
for folks "out there" not to let their dreams exceed their pocketbooks.
Posted by: bren at May 16, 2007 12:15 PM
The only issue I have is with the glib "Forecloseures of the Week" title.
Makes it sound predatory.
How about a simple "Foreclosures this week" title?
Ok it does not imply that this is only a subset but ppl will soon get the drift
Posted by: Anonymous at May 16, 2007 12:16 PM
I put an offer in on a property that was facing foreclosure and it was rejected. My offer was above the lien amount.
The owner decided to go to auction rather than sell to me and he ended up selling for a higher price at auction. The seller does get to keep anything in excess of the lien but can usually do better by negotiating the lien down with the bank.
By the time it goes to foreclosure there are often so many penalties plus the default interest rate kicks in which could be as high as 25%. So the lien amount can be significantly higher than what the bank actually lent.
Posted by: Anonymous at May 16, 2007 12:19 PM
And I have issues with the word glib.
Posted by: Anonymous at May 16, 2007 12:20 PM
On second thoughts, it sounds more like a second hand car salesman's pitch.
Deal of the week!
Repossed cars ready to drive right off the lot!
All you need is the cash and we've got the stash!
Posted by: Anonymous at May 16, 2007 12:21 PM
Good for you for saying so, the person with the issue with the word glib.
Keep this open dialogue flowing!
Posted by: Anonymous at May 16, 2007 12:23 PM
Whether it is put on this site or not,
foreclosures are public record. Is this
the da generation, don't you get the foreclosure scam. These owners, unless they are the scam artist, don't make a dime. Penalties, lawyets fees, referee's fees Nothing is left. Do we all rememver the scandals at the auctions. what exactly do you people read.
Posted by: Anonymous at May 16, 2007 12:34 PM
I recently read about an organization
that helps people from losing their homes due to predatory/subprime loans...
www.naca.com
Posted by: bren at May 16, 2007 12:42 PM
Also came across this article recently about the same subject:
http://www.nydailynews.com/news/2007/05/09/2007-05-09_pols_raising_roof.html
Posted by: bren at May 16, 2007 12:46 PM
I support the foreclosures of the week postings. It's PUBLIC information.
Posted by: Anonymous at May 16, 2007 12:50 PM
If you go to Acris and read the mortgage terms for 614 Lafayette, you'll understand why its going to foreclosure. Page 20 has the info to save time.
Posted by: Anonymous at May 16, 2007 12:51 PM
this subprime/predatory loan
mess probably doesn't affect many of the readers of this site, but if one views a map of the areas in Brooklyn where homes are going into foreclosure, it's quite alarming.
It will affect us all.
Posted by: bren at May 16, 2007 1:08 PM
If anyone knows the answer, I would appreciate your thoughts- once I home goes into foreclosure, can it still be sold in a private sale by the owners. Hypothetically if I wanted to buy 614 Lafayette (not realistic as the auction is tomorrow), could you go to the owners and negotiate something or does the bank control the process at that point?
Posted by: Curious at May 16, 2007 1:38 PM
If it's going to auction, it's already in foreclosure, so the bank controls it. Don't know about private negotiations with the bank, but my guess is no, since the bank wants as much dough as it can get, which I imagine would come from an auction in this kind of market.
Posted by: Anonymous at May 16, 2007 2:16 PM
It's too late at that stage.
I think Pshark tracks the state before foreclosure which, if it did, you could then do what you propose. You would have to check the pshark website though
Posted by: Anonymous at May 16, 2007 2:17 PM
ok I just went to pshark.
The stage is called Lis Pendens and psahrk tracks these.
google for more info
Posted by: Anonymous at May 16, 2007 2:21 PM
In New York, a judicial foreclosure state, the lienholder doesn't control the property until after the auction. If it is not sold to a 3rd party at the auction then it goes back to the lienholder. If the bank is the lienholder and takes possession after the auction, the property is known as "REO" or real estate owned. The property owner has the ability to sell the property or pay down the lien up until the moment of the auction.
Try tracking some properties in Lis Pendens. You will see that alot of them disappear between Lis Pendens and actual auction because the owner was able to work out some kind of deal prior to the auction. (Although this may be a little more difficult for private investors to accomplish now thanks to the Home Equity Theft Prevention Act, effective Feb., 2007...but that's a different conversation)
Posted by: AnonyEsq. at May 16, 2007 5:03 PM
Something has to be up with the Flatbush house. With a $136K lien your monthly mortgage payment is less than $1,000 per month. Can't believe that you couldn't rent the place out for well more than that and stay current.
Posted by: Anonymous at May 16, 2007 6:20 PM
Think about it people. The guy complaining that this is "crass" and "predatory" is trying to throw you off the scent casue he's an auction hound.
There is a reason he don't want bstoner drawing attention to this stuff.
Posted by: Anonymous at May 16, 2007 7:32 PM
Actually I have no problem with listing these foreclosures. I just think that the title is too glib.
The paranioa of ppl is amazing.
Keep these listings going I say.
Posted by: Anonymous at May 16, 2007 8:19 PM
Is anyone familiar with a recent NYS law that may enable someone who lost their home to foreclosure to regain ownership of it even after a foreclosure sale to someone? I was at a property-owning seminar recently and the speaker as well as several participants were citing this new law. If this is true, Holy House of Sand and Fog!
Posted by: anonymous at May 17, 2007 12:36 AM
Stop talking, go to an auction. There will be people there who will laugh at you, but you have been laughed at before.
Bring cash or money orders, the referedd
will ask to see your money. If you are not in the gang, they will bid you up to high.
It's how it is done. I helped indict the
crews two years ago. Unfortunately, it is still going on, and on, and on.
If there is a deal to be had, the vultures will have it.
I still work with a charitable org. that
tries to stop these fraudulent practices.I represent the homeowner for free. I suppose what I dislike about Prop Shark, is the fact they used to call homeowners who are in trouble, dead
beats. That really says more about the kids who run the site, rather than the people in trouble.
Posted by: Anonymous at May 17, 2007 8:29 AM
I have seen prices jump three hundred
percent in the last few years. Follow the
deeds, follow the paper trail. See who is making the money, see that in reality you have paid way too much. If someone owns a property for two years, buys it for 500k
and sells it for 1.85M you HAVE PAID TOO
MUCH. Most of the development props
were once distressed buildings. Some
distressed props just keep being passed along, banks get taken, we all get taken
Soon the values will drop again, what if
tomorrow your property is worth half.
Developers pay aroung 120 buildable and
if they do a nice job, another 180 to
finish constuction. If they can build
for 280-300 they can afford to charge
1000 a sq ft. put they could make a profit at 460 as well.
Posted by: Anonymous at May 17, 2007 8:46 AM
12:36- The law is called the Home Equity Theft Prevention Act. A homeowner in foreclosure who was defrauded out of his/her home has up to two years to get it back. The law gives a list of requirements that investors have to comply with.
Text of the law:
http://easternabstractny.com/pdf/hetpatext.pdf
or
http://www.kse50.com/billdatabase/billTexts.php?show=NY+SB+4744
Posted by: AnonyEsq. at May 17, 2007 10:42 AM
Very hard to win these cases, take for ever, and the unscrupulous have a tendency
to use force on old people in these houses. In order to protect one old owner
from harrassment, i stayed in my car and waited for these parasites. They drove off
when they realized someone was looking out for the old guy. it makes me sick to think
how many old people have been moved from
their houses by these criminals.
These felons get federal time, easier,
they get parole and time off for good behaviour. They get a few years and they are out in sixeen months. They make millions off of old people in our nabes. My compaint is that we are supposed to be watching out for the old people in our nabes, we are not supposed to be taking advantage of their situation. In a previous piece in the
Times they wrote about our org. The only calls we had were from people looking for a deal. Trying to make money, not help. I must have had one hundred calls in two days, not to help, not to volunteer; oh no, I had a hundred calls from young people wanting a bargain.
I rest my case . J'accuse.
Posted by: Anonymous at May 17, 2007 11:54 AM
In NYS under the right of redemption, a homeowner whose house is in forclusre has the right to buy it out of foreclosure by satisfying any unpaid liens -- there have even been cases of homeowners trying to buy their properties back after an auction sale but before the bank had delivered the deed. Banks are often agreeable to this; in one case, in Suffolk County, the auction buyer sued and won and got to kkep the property, but in other cases they've simply given up.
Posted by: babs at May 17, 2007 1:48 PM
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