The Foreclosure Climate Is Being Further Clouded by Recalcitrant Landlords
The foreclosure climate is bad but it is being further clouded by recalcitrant landlords who are not timely paying taxes and playing hide-and-seek with security deposits.
An investigation team in Rochester has made note that one landlord owes the city over half a million as taxes. Char Bren Development is the owner of dozens of units that it rents out all through Monroe County. Many of these are now foreclosed upon and the tenants are worried that they will be thrown out.
Shane Brown is unsure about his next address. He and his family have been living in a rented house in irondequoit. But it has now been discovered that the landlord is being foreclosed upon, having failed to be regular on mortgage payments. The law firm of the bank told Shane that since the property is in foreclosure he should start looking for alternative accommodation.
The landlord of Shane was CharBren Development that is operated by Chuck Hain and his sister Kimberly Matina. The siblings have been owners of hundreds of units in Monroe County often buying them one after another in swift succession. Now many of these apartments and houses are in foreclosure.
Recently 59 of these properties were auctioned off by a bank. Michael Beyma, attorney representing the bank said, “The properties were rented but the bank received no payments of principal or interest, and then noticed the borrower was not paying taxes, nor insurance. So we had no alternative but to commence foreclosure to get the loan re-paid.”
The units were repossessed by Canadaigua National Bank. It gave the assurance that the tenants would not be throw out. Beyma however was at a loss as to why Hain was defaulting in payments as he had been a borrower for quite a number of years and there is sufficient flow of cash from his other properties. By this time the two should have made their money.
Hain declined to make any comments to the investigating team. The facts noted by the county clerk show that the financial problems of Hain have now engulfed his own residence worth $400,000 located in Penfiled. It too is facing foreclosure.
The investigators reported that Hain was lagging behind in millions of dollars in taxes. Simultaneously he has been issued several notices for not returning the security deposits of previous tenants. One of them is Shane Brown who has paid a security deposit of $1,000. Shane has given up hope of seeing the money again.
This problem is starting to become a major headache and is going to get worse. Something needs to be done. What I’m not sure, but if a home owner is in foreclosure or knows foreclosure is looming and rents out their home anway, their needs to be a penalty for it.
One has to wonder what genius at the bank didn’t think to offer the tenants mortgages at a good rate as opposed to throwing the whole baby out with the bath water [ask your grandmother if you don't get that]. Like Max says, “Missed it by that much!”
I”was a tenant of his for (2) year”s Payed $1000.00+ x 12
$24,000 2 years at $1,500.00 +no taxes or mortgage payed on property from day of purchased in 2005 bank take over followed by 90 day eviction (Notice) (3)Days Before Xmas with “NO” PLACE ta Move” we were then offered CASH FOR KEYS if we were out by Janruary 1,2010 we would receive $2,600.00 we were then offered $5,000.00 if out by FEBRUARY 1, 2010 we were all moved out by Feb.1, 2010 we then received a check for $5,000.00 it was a small price to pay for what we had been through we also filed for our security deposit that wenever received. thank you chuck kim and sam at char-bren development hope you people sleep well at night P.S.Are Rent as always ((PAID) UP TOO DATE