By: Daniel Gershburg
My oh my how far these collection agencies have gone. I am now hearing stories about collection agencies threatening to put liens on homes and put them up for Foreclosure if credit cards debts aren’t paid back. A little tip. When you hear that, or any threat for that matter, make sure you get that persons name and extension. Why you ask? Because it violates the FDCPA, a federal law promulgated specifically to help cut down on some of the massive abuse many people face from credit collectors. You can actually sue these credit collectors if they have violated the FDCPA…they just think you wont.
Now the question for this New York City Debt Settlement Attorney is, “Can a credit collector put a lien on my house in Brooklyn and put it into foreclosure?” The answer is an emphatic NOOOOOO. Credit Cards are unsecured debt. Meaning if you don’t pay them, there isnt much recourse for the credit collection agencies to take. One of the more popular forms of collection these companies now use is to bring suit against you and garnish part of your wages. They can do that. In fact they have been doing that much more frequently these days. But they cannot go after your home, your car, your livelihood, your children, your clothes, or put you in jail. They’ll tell you they can. This area is so ripe with complaints that the government can’t even keep up with them.
The lesson is this: No collection agency can take your home if you owe credit card debt. I dont care how much you owe. If you have a mortgage and you pay it, end of story. What a credit collection agency can do is harrass you and make you want to rip your hair out. There is a solution for that too. Under federal law, it is your right that you demand the collection agencies stop calling you. The best way to go about it is to send them a letter informing them that you no longer wished to be contacted by phone. Guess what, they have to stop. I have included a link to a sample letter on the bottom of this blog.
Like many of my past blogs I’m sure I’ll get some angry responses from people insisting that these debts are owed and should be paid for. And I get it. I do. But for the people that are trying to make ends meet in this day in age, especially in New York, feeding the kids takes precedence over American Express. And furthermore, owing an (unsecured) debt should never give someone a license to threaten to take away a home, or to threaten jail time.
http://www.stop-nco-financial-collection.com/nco-dispute-cease-desist-letters.html
Daniel Gershburg Esq., is a Bankruptcy & Real Estate attorney serving clients in Brooklyn, Queens, Manhattan, Staten Island, Long Island and Westchester. Mr. Gershburg has given lectures and presentations to both attorneys and the community at large surrounding Bankruptcy and financial advocacy in the New York City area. He is a proud member of the National Association of Consumer Advocates. Currently he is working on his first book giving practical advice about repairing troubled credit and how to improve credit post Bankruptcy
By: Daniel Gershburg, Esq.
First the good news from this Brooklyn Real Estate attorney: Many new condominiums in downtown Brooklyn are realizing that the Real Estate market is not what it once was and are offering a myriad of concessions including paying transfer taxes, saving potential purchasers thousands of dollars in closing costs.
Now the bad news: The worksmanship of many of these new constructions leave much to be desired. Brownstoner.com covers many of these buildings, and their problems, in depth, but suffice to say that the builders were looking for profits and as such have skimped on traditional worksmanship as a result. In english…some of the buildings stink. Again, we’re not talking about all of them, but many of them have some issues. An example: Two clients purchased a brand new construction in the heart of Park Slope about 6 months ago. They chose a unit that was above the garage. The building, realtor included, had promised to use noise dampening materials to cut down on any noise the garage door would make when opening and closing. And they did. Except the materials they used weren’t the best and weren’t doing the job. Now you might think that these potential purchasers should not have gone ahead with purchasing a unit above the garage, but when you have numerous people from the building explaining in detail all the steps they would take to make sure the noise was not an inconvenience…and they dont…you begin to realize that there is a problem going on.
There is no easy solution to this problem, but there are certainly proactive steps that you, the purchaser, can take when deciding whether to purchase a new condo in Downtown Brooklyn. First hire an engineer to do an inspection before making any concrete offers. While the building may have their own inspector, you should definitely pay a seperate inspector, who has experience dealing with new construction buildings, to come in and take a look at the premises. She/He may find problems that the inspector for the building didn’t or couldn’t find (cough cough). Furthermore, it will give you additional piece of mind when you plunk your security deposit down.
There are also certain contractual provisions that your Real Estate attorney can put into the contract that can compensate you in the case of bad workmanship. Lastly, you should contact the sales agent frequently if you find something is wrong with the new unit after you sign a contract to purchase. The agent can be incredibly helpful in eliciting a response from the building, especially if you keep at it.
The lesson from this Brooklyn Real Estate attorney is: caveat emptor, or “Let the Buyer Beware” when you are purchasing a new condo in Downtown Brooklyn. You can take certain steps to make sure the building you’re purchasing into is structurally sound, and the unit you are purchasing is ok. Ultimately the decision is yours, but taking proactive steps with all parties involved will go along way towards minimizing any stress you may suffer during the purchase process.
Daniel Gershburg Esq., is a Bankruptcy & Real Estate attorney serving clients in Brooklyn, Queens, Manhattan, Staten Island, Long Island and Westchester. Mr. Gershburg has given lectures and presentations to both attorneys and the community at large surrounding Bankruptcy and financial advocacy in the New York City area. He is a proud member of the National Association of Consumer Advocates. Currently he is working on his first book giving practical advice about repairing troubled credit and how to improve credit post Bankruptcy
By: Daniel Gershburg, Esq.
Looking to purchase your first home in new york city? Are you looking for a mortgage in Brooklyn? Lets face it. Everyone gets caught up in the moment when they are looking to purchase their first home in New York. The idea of ownership, culminating from several years of saving up funds for a downpayment (and closing costs), allows one to make rash decisions that they ordinarily wouldn’t make. But this last week taught me a very important lesson. The lesson is that sometimes it is better to pass up on purchasing a home when your gut tells you to. It’s important to make the smart, objective decisions that won’t require you to call a lawyer for bankruptcy help because the mortgage may just be too large or the house worth much less than you initially thought.
One of my clients taught me this lesson this past week. A first home buyer with perfect credit, he seemed the ideal candidate to purchase a condo in downtown Brooklyn. However, as things progressed, he realized something wasn’t right. Issues with banks and mortgage brokers led him to believe that this just wasn’t the right place and time to purchase…and he walked. He made the right decision for himself.
Another client of mine found that a house he thought was perfect, ended up having too many structural issues to handle. The glimmer in one’s eye when they think they have found the perfect home tends to fade when they see how much it will cost to actually “make it perfect”. And so, he too decided to pass.
The lesson here is this. When you think you’re ready to pull the trigger on purchasing a home…take a long breath and a step back and ask yourself if you’re ready for the commitment. Are you ready to purchase this house, for this price, right now? If you’re not, thats absolutely ok. FYI, I am a New York real estate attorney who is telling potential clients that its ok to walk away and not purchase a home. I think…I know…in the end its better to have piece of mind surrounding the house you buy.
A last lesson which one should keep in mind at this time. The banks have become MUCH more stringent about who is qualifying for mortgages and who is not. You hear stories about sub-prime mortgages all the time, but you dont hear whats happening which prime mortgages, specifically alt+A mortgages. These mortgages are given to people with good credit and very little income and asset documenation. As a result, many people with credit scores of 720 and above are failing to procure mortgages they need. Banks such as Countrywide and Bank of America, who used to give out mortgages like they were promotional pens are cutting the pursue strings rather tight. Just a word of caution.
Daniel Gershburg Esq., is a Bankruptcy & Real Estate attorney serving clients in Brooklyn, Queens, Manhattan, Staten Island, Long Island and Westchester. Mr. Gershburg has given lectures and presentations to both attorneys and the community at large surrounding Bankruptcy and financial advocacy in the New York City area. He is a proud member of the National Association of Consumer Advocates. Currently he is working on his first book giving practical advice about repairing troubled credit and how to improve credit post Bankruptcy
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