A concerned Lakewood resident would like to inform all Lakewood residents of the following important info, Litoeles Horabim:
As everyone in Lakewood is aware by now there will be a Bankruptcy auction April 2 in Lakewood for over fifty properties. There are ads in every paper, the hype is tremendous. Prices for a property are as low as $89,000 and up to $218,000, what could go wrong?
The answer is there are more things that can go wrong then could go right. But let’s start with the facts.
All properties have mortgages on them and all the mortgages are closer to double to what is listed in the ads. To get everyone’s interest they low ball the number for each property and increase the hype and hope that many people will come out to the auction and bid higher then the mortgage amount so the banks don’t loose any money on the property.
There were over 150 people who showed up to the pre-auction meeting, many in Yeshiva or without any real estate knowledge whatsoever. The questions that were asked at the meeting prove that most people have no idea what they are getting themselves into.
Many or most of these properties have tenants in them, most or all of these tenants have not paid rent in months or maybe years since the previous owner was not collecting rent. If you think you will get them out by telling them you’re the new owner, or collecting rent from them, think again. If you think you will just evict the tenant, you hear all about evictions all the time, here is some news to you: The process of an eviction contrary what you hear that it takes 30 – 45 days, can take months or close to two years if they will fight the eviction or go bankrupt. Most of these tenants will be able to postpone the eviction since no work has been done to these houses and many are in need of repair and you as the landlord are now responsible.
Please buy with a cheshbon, and an educated decision:
If you are looking for a home for yourself, make up your mind prior to the auction on the price its worth to pay (with help from professionals in the market, such as Realtors, etc) and keep to this price. Hire a home inspector to inspect the property and determine if there is damage to the house and what the costs are. Make sure you have deep pockets that you can carry a mortgage for six months without rent. Think about making sure you are ready to put in money to fix the roof’s or leaking oil tank; (yes many of these properties have oil tanks that are leaking below ground, and the township will not let you occupy these house or rent them out with the leaks, and it can take months or years to fix leaking oil tanks if the oil leaked into the soil,).
Please, please keep in mind if there was a quick buck to be made on these properties it would have been made two years ago before the property got to this stage.
Editors Note: YWN did some of our own inquiring. Those involved in promoting this Auction want all prospective buyers to be aware of the “as-is where-is” conditions of these sales. Please do not proceed with a purchase without prior financial and legal arrangements. The following link will allow access to the information currently available regarding the properties. http://75.127.157.190/dwek.html This link will bring up the advertised flier. Click on the flier to access the individual property information.
Join the official YWN WhatsApp status
15 Responses
So what happens if the tenants living in them are Jews? Are the buyers, who are also frum Jews, supposed to just kick them out?
shows you how bad the real estate market in lakewood is – if only 150 people showed up to the pre-auction.
none of these houses are in desirable locations in Lkaewood. If these would be desirable listings, there are tons of investors here that would have snatched them already.
Thank you yeshiva world
for exposing a possible fraud, or potential loss of money.
התורה חסה על ממונם של ישראל
let the buyer beware.
dont be so gulibble.
Thank you to the writer of this informative letter. Can you please have this posted in the Lakewood weekly papers to ensure that the typical Lakewood family will have access to this info.
to bt7 YWN posted it online this way the typical lkwd family will read it
Thank You, You have a Yiddish Heart!
this is a great public service announcement.
when we were looking to buy a house in Monsey, we looked at one house that was below market value. nice property, nice block etc. I mentioned it to a friend who told me there was a lien on the house – he had checked into it. the Real Estate agent 1) denied it and 2) told us that the house is vacant. we checked out the house. there was fresh food in the refrigerator – not something you would expect in a vacant house. I questioned again regarding the lien and he assured me there was no lien. just like he lied about the vacancy, he lied about the $60plus thousand lien on the house.
the point of telling my story is don’t get involved without knowing all the details.
Other issues to bear in mind when purchasing from an auction are that there may be additional liens on the property. These include secondary mortgages, real estate taxes, water bills condo association fees, etc. While I do not know the specifics of these properties, it is important to due the proper research befor placing a bid.
Auctioned properties are generally very stringent in regard to closing whithin the alloted time. Any delay could result in significant penalties, and possibly a loss of the 10% deposit. Considering the difficulties in obtainig a mortgage in the current market, financing should be in place before placing a bid.
One should always do proper research before buying a house or apartment, this includes getting it inspected, a title search to make sure that the person who you think owns it does and other things. Consulting with a lawyer is a definite must!
So what happens if the tenants living in them are Jews? Are the buyers, who are also frum Jews, supposed to just kick them out?
Well ether evict them or work out a rental contract. Or don’t buy it in the first place. Personally I would find out if the house is occupied before I bid on it and know what I plan to do if it is.
Excellent article, thanks for bringing this information to light.
One item that the writer mentioned was oil tanks, just to clarify, if you have insurance it’s a time issue, if you buy it without the proper insurance to clear up an underground oil tank can cost tens of thousands, I know someone who had damage of close to $100,000 because it hit the water line, be very careful to have the proper insurance in place!
Also keep in mind like someone commented to get a mortgage on an investment property is getting much harder, I am told by the end of the month there will be no more stated mortgage on investment properties because of the mortgage meltdown, be careful!
Who is to say that the bankruptcy auction is not too rosy? Of course there are concerns, the same way there are concerns when you buy any house. That is why the organizers have arranged open houses at all the homes that are up for sale at the auction. That is why there was an interview in The Voice of Lakewood this week with one of the individuals selling the houses. The organizers are available and willing to help all those interested in purchasing a home; a home that may very well sell well below cost price. Of course you may not end up getting a great deal but if you are seriously interested in buying a house go look at the prospective home on the date of the open house and if you decide that it is for you decide on a price that you are willing to pay and go to the auction with that price in mind. This is actually a very rosy oppurtunity for someone to POSSIBLY purchase a house at well below market price.
As for those who are concerned with liens, mortgages etc. being that this is a bankruptcy auction, the purchaser acquires a house with 100% clear title. Thank you for looking out for the oilam but unlike foreclosures and sherrif sales a bankruptcy slae comes without any baggage whatsoever.
So thank you all for your concern for us Lakewood people but to my fellow Lakewooders I for one view this as a very rosy oppurtunity.
i was at the pre auction meeting. I am not an expert on real estate. But I will say that this article is a little unfair.
1. The court order specifically calls for clear title sales. ANY lien on the property is by LAW cleared for the seller.
2. whenever you buy any property, if you do not have the house inspected before purchase you are only going to have a tremendous amount of problems. Who would do such a foolish thing? When you buy a car for $10,000 you have it inspected, a house for $200,000 or more you wouldn’t? If you responded no to this point, take my advice, DON”T BUY ANYTHING EVER!!!
3. Of course you must do your due diligence before buying a property. Speak to an atorney, and such forth.
I have to say that not one point that you brought up is the fault or misguidance of the trustees. This auction is legitimate. I myself would like to buy, and of course, I will due my share of investigating before the auction. It’s unfair to portray the trustee of the sale in a bad light because people are fools with their money. If any straight person doesn’t participate now because of your “warning” I really think that you are responsible for a lose to a yid.
To #13 & 14, I think you have a good point about clear Title, but I don’t think the writer mentioned anything about Title, he/she was addressing what can go wrong even with 100% clear Title.
1. There is hype about something that does not exist (prices).
The auction will not be for the prices listed, it’s to get people to come, once people get swallowed up by an auction they loose themselves about the price they came to pay (I have seen this many times).
2. Many things that can happen by an auction that does not happen when you by with a standard purchase contract (including the time frame, you can loose your deposit for walking from the contract let it be an not getting a mortgage because its becoming harder every day to get one, an oil leak, a tenant etc…).
I don’t think the writer was referring to seasoned investors who know the ins & outs.