Welcome to The Home Equity Theft Reporter, a blog dedicated to informing the consumer public and the legal profession about Home Equity Theft issues. This blog will consist of information describing the various forms of Home Equity Theft and links to news reports & other informational sources from throughout the country about the victims of Home Equity Theft and what government authorities and others are doing about it.
Thursday, May 03, 2012
Tenants Accuse Bldg Manager Of Lease-Purchase Scam After Discovery That Foreclosure Action Predated Rent-To-Own Contracts; Duped Victims Face The Boot
In Rockaway, Queens, the New York Daily News reports:
It was supposed to be a dream home by the ocean — but instead turned into a sea of red tape. Management at the Metroplex on the Atlantic, a 15-story luxury apartment complex in Far Rockaway, offered prospective homeowners a rent-to-buy contract.
But after a year of plunking down money on above market-rate rent and on improvements for units they hoped to someday own, some would-be homeowners now say they were duped. The building was going into foreclosure, a process that would void their contracts.
“I was sick to my stomach when I heard,” said single mom and registered nurse Andrea Ahanonu. Residents said they were taken with building manager Jerzy Szymcyzk, a charismatic 62-year-old who would playfully demonstrate headstands for them.
Karla Shah said she agreed to pay $1,600 a month for a one-bedroom unit, above market rate in the neighborhood, if it meant soon owning a condo in a building with a sweeping ocean view. Shah, like her neighbors, believed she was signing a contract that would let her to buy the unit in a year. She said she also had a gentleman’s deal with Szymczyk that 3% of the rent would go toward a downpayment. “I was so close to getting a loan approved,” said Shah, who teaches English as a second language.
But last fall, the tenants were surprised to learn the building was in foreclosure and their contracts were invalid. Furthermore, court papers show the foreclosure began in September 2010, even before Szymcyzk signed up prospective buyers.
The tenants had two options: continue paying the pricey rents without a rent-to-own agreement or leave their homes. Many of the tenants have since stopped paying rent and have received eviction notices from the property’s receiver, Walter and Samuels Inc. Residents blame the smooth-talking Szymczyk for pulling the wool over their eyes.
But Szymczyk said the tenants didn’t read the contract carefully and denied there was a 3% gentleman’s agreement. He also blamed the foreclosure receiving company for not honoring the rent-to-buy deal. Walter and Samuels did not return a call seeking comment. “I didn’t cheat no one,” said Szymcyzk, who has an unrelated labor lawsuit pending against him filed by Metroplex employees.
Meanwhile, the building is deteriorating. Its elevators now have four violations with the city Buildings Department, an empty pool sits on the unlocked rooftop and a broken garage door allows anyone to slip in the building unnoticed. “I just want this to be over,” said Ahanonu. “I want my money — that’s what I want and then I’m gone.”
CBC News: Betrayal of Trust (A CBC investigation reveals how lawyers across Canada have misappropriated and mishandled clients money, to the tune of tens of millions of dollars, or sometimes even charging vulnerable people top dollar for shoddy services)
Land Contract/Contract For Deed/Rent-To-Own Rackets
The New York Times: The Housing Trap (In the wake of the housing crisis, low-income families have turned to seller financing to buy homes but these deals can be a money trap)
Beware The Fine Print: Consumers Forced To Sign Away Their Rights To Use Court System
The NY Times: Arbitration Everywhere, Stacking the Deck of Justice(Part 1 in series examining how clauses buried in tens of millions of contracts have deprived Americans of one of their most fundamental constitutional rights: their day in court)
Foreclosure Mills' Abysmal Record In Complying With New NYS Foreclosure Requirements
Justice Deceived: How Large Foreclosure Firms Subvert State Regulations Protecting Homeowners
MFY Legal Services Report On Questionable Practices By Process Servers In Debt Collection Cases
Justice Disserved: A Preliminary Analysis of the Exceptionally
Low Appearance Rate by Defendants in Lawsuits Filed in the Civil Court of the City of New York
Mortgage Mess Redux: Robo-Signers Return (A Reuters investigation finds that many banks are still employing the controversial foreclosure practices that sparked a major outcry last year)
CNN Video: As Foreclosures Mount, Florida Court Turns To 'Rocket Docket'
The Wall Street Journal: A Florida Court's 'Rocket Docket' Blasts Through Foreclosure Cases (2 Questions, 15 Seconds, 45 Days to Get Out; 'What's to Talk About?' Says a Judge)
"Produce The Note" Strategy When Dealing With Missing Promissory Notes In Foreclosure Actions
ABC Video: Fighting Against Foreclosure (Some homeowners have found a new tactic to keep the banks at bay)
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