September 28, 2021

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Mortgage News

Man goes over 20 years without paying mortgage, evading evictions along the way

A man has been avoiding eviction from his Long Island home for more than two decades after making just one mortgage payment and battling banks and brokers repeatedly in court, according to court records.

The 52-year-old Guramrit Hanspal “bought” the house in 1998 for $ 290,000, according to the New York Post.

It is now valued at nearly $ 400,000 Zillow, Here the house is currently being offered for sale, “CASH ONLY”.

By skipping payments and interest, Hanspal has reportedly saved more than $ 440,000 over the past 23 years.

He secured his original mortgage from the now-defunct Washington Mutual in 1998 and made just a single payment of $ 1,602.37, according to the Post.

The bank was foreclosed two years later, but Hanspal filed the first of its seven bankruptcies in 2001 to avoid eviction under federal regulations that protect debtors from being thrown on the street.

He also sought relief from the state courts and, although he was not entitled to the property, transferred the deed to a friend in 2004 who continued to play similar bankruptcy games.

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Washington Mutual collapsed in 2008, “a victim of the subprime mortgage crisis and a major contributor to the subprime mortgage crisis,” as US District Judge Frederic Block put it in 2019.

JP Morgan Chase took over his assets and, according to the documents, also took over the court battle over the eviction of Hanspal.

Although Hanspal has lost numerous court battles since then and was ordered by the Nassau County Sheriff’s Office to vacate the property in 2010, he has stayed at the house.

Eventually, Chase sold the property to Diamond Ridge, a real estate company that, according to the Post report, spent nearly $ 200,000 to continue the battle to evict Hanspal and others who continue to live in the apartment.

And even if judges in state and federal courts seem poised to put an end to the dramatic foreclosure process for good, the coronavirus pandemic has thrown another bone at criminal squatters who cannot be evicted under temporary rules.

A call to the number given for Hanspal received no answer.

For more information, see Fox Business.