FORECLOSE HAS HAPPENING IN SUFFOLK COUNTY NY

[Barry Schwartz]

A former employee and still a friend has screwed up big time. His last mortgage payment was made in 2009. At that time he owed only  $57,000. The house was worth about $200k if not more. I told him not to worry the first year since the courts were backed up, he had no money to pay up and his wife died and she was the main bread winner. He never hired a lawyer nor has he appeared at any court hearing. Needles to say that in 2016 the supreme court judge made his final ruling in favor of the  bank.

My friend asked me what was going to happen next. I said that they will probably publish everything in the newspaper for 4 weeks and then auction it off. My friend was also collecting rent from his tenant which more then covered the mortgage. He is broke.

His tenant gets a letter that says f she moves that she will get $$3,000. A sort of cash for keys.

My friend asks me to check to see if his property is listed on line. Sure enough it is. The website is auction.com and it's a PRE AUCTION that starts on Oct 21 and ends on the 24th. The pre auction price is $35,000 which if it's sold for that is legalized stealing.

The title report shows a few liens. According to my friend the Department of Social Services made him sign the standard lien of $200,000, that was to pay the electric bill.  It turns out it was only a few thousand dollars. There were also some small past due hospital bill.

What if anything can be done? Claiming bankruptcy will only buy a few months.

The  house is occupied and is in good condition,