9 Replies

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 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,


This sounds like a terrible tragedy has befallen your friend.  But he has lived in this house not paying his mortgage for 8 years, and you mention that he is collecting rent.  Seems a bit unfair to the stockholders or the bank to have to subsidize this situation.  Moving 8 years ago could have avoided this.

His wife passing  was something that hit him hard. He had an obligation to pay his mortgage. It was a very affordable amount. He did get screwed by some of his renters but that's called Karma.  I'm not in the real estate business but I told him to sell his house. It's not in the best area but he would have been able to pay off what he owed plus walk away with at least $50k. Today his house is listed on the scam site and I believe that the bank will in the very near future list it in the newspaper. The house is in good shape so someone will get a pretty good deal. If my friend listened to me he would still be in his house.  He also lived in the house so he was in effect living rent free. 

Thanks for not giving a snotty answer.  Again Karma got him. 

Still looking for some answers so if anyone knows that would be helpful.  

I imagine that it is way past the point that he will be able to save his house. But if his wife’s death has hit this hard that he can’t pay his rent 8 years later he needs professional help. Search “complicated grief” because it seems that he may have it. Or he has an addiction and can not hold onto money because all of his dollars are going towards feeding his addiction. I imagine this will be a true wake up call for him to really get help for himself or he will only go downhill from here.

I'd find him a good moving company and if you are a good friend, be there to help him move.

@Barry Schwartz

As others have mentioned, he hasn't paid his mortgage since 2009, even though he was collecting rent. Everyone understands, home prices took a hit in 2009. But, the payment on the $57,000 mortgage would have been rather modest. is a legitimate site. The actual auction will most likely be live at the Islip Town Hall, not on the site itself.

If he wants to stop the auction, he would have to come up with the money based on the lender's schedule of back due payments. There wouldn't be enough time to sell the property unless he could come up with a quick cash offer.

Seems like your friend lived since 2009 for free. At this point idk what recourse he has if anything, but it might be time to move on. I agree with above, help your friend get into a place for himself (I assume a rental).

How is a ‘scam site’?

I work with people who work there and they’re all good people.

Because your friend didn’t pay his reasonable mortgage, was foreclosed on, now some other entity is the ‘scam’?

Problems befell many. Life isn’t equal to all. Your friend has had his share of problems. But your friend is also the cause of his own current problem. And it seems to me if he, or you, or anyone else is looking to blame someone else, the problems will persist.

Hire a mover. Find him an apartment.


Thank you for your comment. This is his problem that he brought on all by himself. I - This is my opinion. I did a Google search on AUCTION.COM REVIEWS. Almost all of the reviews were negative.  It looked like a lot of people had bad experiences with this auction site. I went to many of the review sites and it was pretty clear that almost all were not very good. People had various problems. That doesn't mean that all of the employees that work for are bad. I like, it has a fantastic website where the user can do a search and find everything. Some reviews say that there is a lot of misinformation. Maybe there is some but it's up to the user (bidder) to do their due diligence. This is the information age. I read a few reviews that said had a 100 page contract that was geared to the seller. If for whatever reason a sale did not happen and you were the winning bidder it took a long time to get your money back. The list goes on and on. How accurate are these? Who really knows but almost every review was not good. 

     About my friend. I agree that his not paying a mortgage for so long is ethically wrong and if the New York courts weren't so back logged he would have lost his home several years ago. I told him to sell it and walk away with $125,000. He had a better idea, save his house but no real plan. How smart is he to not only NOT retain an attorney but also never show up to any of the court proceedings. That is called pure stupidity. He had plenty of renters that skipped without paying. One renter left the water on for 3 days and caused a lot of damage that he had to fix. No insurance. I told him to do a background check on his tenants but he never did, again stupidity on his part. Will I hire a truck to move him? NO! Will I put him up? Absolutely not because I would end up evicting him. I won't lend him any money because that worse then throwing  money away. 

     Today he called me. I asked him if he saw a REAL ESTATE LAWYER  who specializes in FORECLOSURES. He didn't. 


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