An American from Long Island has lived in a house for 23 years and paid only one installment for the mortgage. A loophole in the legal system makes it possible.
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A man from Long Island in the US state of New York wanted to buy the house he lived in 23 years ago with a mortgage for a sum of 290,000 dollars. He paid Wahington Mutual, the bank that granted him the mortgage, an installment of $ 1,692.37 the first month – and nothing since.
Although the bank ordered the eviction in 2000 and the house now has new, legal owners who wanted to sue him, the man still lives in the property. This is reported by the “New York Post”.
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Real estate purchase
The dream of owning a home
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Live for free thanks to bankruptcy law
For years, the American has been referring to a regulation in US bankruptcy law that automatically grants the debtor a right of residence, called “automatic stay”. This means that once the obligee has filed for bankruptcy, the debtor will be withdrawn from the claims of the obligee. And the 52-year-old has insisted on this right for 23 years.
According to the “New York Post”, the man filed a total of seven bankruptcy filings in 2001. In doing so, he not only fought for his right of residence through several lawsuits, but also repeatedly transferred ownership of the house to other people who declared him insolvent several times. In total, at least three other people would give the building as their address, according to the newspaper.
Until the financial crisis in 2008, this scam evidently proved its worth. But then Washington Mutual went bankrupt and JPMorgan Chase became a new creditor. The house has belonged to the real estate company Diamond Ridge Partners since 2018 – and they are tirelessly trying to get the 52-year-old out of the house.
Saved thousands of dollars
The “New York Post” estimates that the man should have saved at least 440,000 dollars (366,000 euros) over the years. In contrast, the creditor is said to have already paid $ 150,000 for court costs and $ 50,000 for property tax. The newspaper has received a statement from the environment of Diamond Ridge Partners, in which it says that there is “no end in sight”.
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With reference to the company’s lawyer, the “New York Post” even suspects that the current corona crisis could even play into the debtor’s cards and that he could be granted a grace period as a result. The courts in the USA cannot keep up with their evictions.
