Foreclosure of the Week: 14A Monroe Street
How’s this for fishy? The house at 14A Monroe Street in Bed Stuy sells for $325,000 in July 2003 and the buyer takes out a $570,000 mortgage at the same time. Two years later, he sells it for $950,000 to a guy who finances $855,000 of the purchase. Now it’s in foreclosure and the bank…
How’s this for fishy? The house at 14A Monroe Street in Bed Stuy sells for $325,000 in July 2003 and the buyer takes out a $570,000 mortgage at the same time. Two years later, he sells it for $950,000 to a guy who finances $855,000 of the purchase. Now it’s in foreclosure and the bank is left holding the bag. That’s what we’d call a cash machine.
14A Monroe Street [PropertyShark] GMAP
The person who bought the house for 950k, is an idiot. Actually, the bank is dumb for approving the loan. I can’t imagine that house being worth that at the time of purchase. Are bank appriasers blind?
It would be quite a coincidence if this wasn’t him:
http://209.85.173.104/search?q=cache:ukEk08gT0mUJ:www.mortgagefraudblog.com/index.php/weblog/permalink/twenty_three_indicted_in_new_york_straw_buyer_scheme/+David+Neustein&hl=en&ct=clnk&cd=5&gl=us
12:28
Quite a few of these guys have been indicted for mortgage fraud involving Credit Suisse.
I’m sure Neustein will be next.
Ultimately however – we don’t punish these people enough for their crimes. We’ll throw someone in jail for 5 years because they have some marijuana on them or mugged someone for $50. Steal hundreds of thousands of dollars and destabilize our economy, playing a small part in driving large numbers of people to petty crime, and you’ll get probation.
It’s a real problem.
The seller (the guy who bought the property for what seems to be a legitimate price of $325,000, took out a $570,000 mortgage the same day, and then sold it for $950,000 two years later, is one David Neustein. The lender, who either securitized the loan or is or is eating it, is Credit Suisse First Boston.
The question is, who is David Neustein, and how was he able to make $625,000 flipping a tired old house in Bed-Stuy in a 2-year period?
fraud and corruption in Brooklyn are older than the brownstones. let the buyer beware.
“Gotta be complicity on the part of the mortgage broker, no? Who would okay such a shady proposition if he or she weren’t going to benefit?
Why did the lender okay it?”
Because it’s the appraiser who is on it.
Too bad. This block of Monroe should be an area where people of moderate means can find a nice fixer-upper.
Gotta be complicity on the part of the mortgage broker, no? Who would okay such a shady proposition if he or she weren’t going to benefit?
Why did the lender okay it?
Now who dose the bank get rid of this house? It only work 400-600K tops well under the loan amount…