SHEEPSHEAD BAY'S ONLY INDEPENDENT NEWS BLOG

Tuesday Tips is a series of articles from local experts to help you save money, make better decisions and plan for a better future.

A debt collection agency froze your bank account and you didnt know about it? And you never got served? Just something in the mail months after a judgment had been entered against you? You’re kidding!

Welcome to the world of debt collection in Brooklyn. Far be it from me to say whether or not service was correct, but I literally have hundreds of clients that have called me with the same problem. Out of nowhere, their bank accounts have been frozen by debt collection agencies. Many of my clients in my Sheepshead Bay office also have social security payments going into these accounts, making it completely illegal for creditors to freeze the accounts, but they do so anyway.

Find out your rights, and how to protect yourself from a debt collector.

Gone bankrupt? You may be able to keep your home, says Sheepshead's expert.

Tuesday Tips, a series of articles from local experts to help you save money, make better decisions and plan for a better future.

For everyone scared to file for bankruptcy because you own a home or a car and would like to keep it, finally, the government has some good news for you.

Under a new law that is just a short time away from reaching the governor’s desk, you can now file a Chapter 7 Bankruptcy in Sheepshead Bay and elsewhere in New York while keeping your home if it has under $300,000 in equity.  Under the old law, the exemption limit for a house was $50,000 in equity for a single filer, and $100,000 for joint filers.

Keep reading to find out what this means.

Sheepshead Bites is bringing back Tuesday Tips, a series of articles from local experts to help you save money, make better decisions and plan for a better future. For veteran tipster Daniel Gershburg’s first column since his hiatus, he’s making a very special offer to Sheepshead Bites readers.

After opening up my own law firm almost four years ago on the corner of Voorhies Avenue and Sheepshead Bay Road, I have worked diligently to give back to those who helped our firm flourish.

When we first started, we basically handled everything that came in the door. We had to. Rent is expensive. So are loans. In any event, we found success in this community, and we were able to move offices, expand, open a second office in Manhattan, and narrow our focus to two primary fields of law, bankruptcy and real estate.

Keep reading to find out how to get free bankruptcy services.

Rising co-op prices could alter Sheepshead's character for years to come (Photo courtesy of Lisanne Anderson)

What to do, what to do, what to do? When panic consumes much of the real estate market, many of my clients were still able to find good values for co-ops in Sheepshead Bay. Last week I completed two closings, one for $150,000 for a one bedroom in Gravesend and another for $225,000. You can’t find prices like that in nieghborhoods as good as Sheepshead Bay anymore. However, cue the tax man, because Governor David Paterson now wants to put a mortgage recording tax on co-op purchases.

Let me explain: When one buys a home, let’s say in Midwood, the purchaser will pay anywhere from 2.05 percent to 2.175 percent mortgage tax on the amount of mortgage they take out for the property. That occurs at the closing. However, since co-ops were not considered real property for tax purposes (they were thought of as personal property, more specifically shares in a corporation), co-op purchasers would literally pay a fraction of the closing costs that purchasers of homes and condos would.  We’re talking thousands upon thousands of dollars in savings, which is, among other thing, what made co-ops a good value. Now, to close a budget gap (until our next one shortly thereafter) Governor Paterson wants to do away with this exemption. You can imagine that co-op owners and propsective owners aren’t thrilled by this.

Continue Reading »

As a Sheepshead Bay bankruptcy attorney, there are numerous instances where I have clients that do not want to file for Chapter 7 Bankruptcy in the area. Instead, they have one or two unpaid bills that are now in the hands of collection firms like Rubin & Rothman, Pressler & Pressler, Cohen & Slamowitz and others.

Here’s the constant problem that they have: they get these absurdly harrassing phone calls from these companies, the client gets scared, and ultimately they give up a crucial piece of information, like a social security number or a bank account number.

At that point, good luck.

If you’ve been in this situation, you know what comes next. Almost immediately, these collection firms will freeze these accounts. The only way to get your money out of that account is to file an Order to Show Cause with the local court, filing for bankruptcy, or agreeing to a settlement (sometimes this doesn’t even work).

So what’s my advice? Read on to find out.

I hope everyone had a great holiday weekend. Though I’m Jewish, I spent Christmas with my girlfriend’s family. I got full, I got drunk, I got rest.

And now I’m back, and focusing on what’s to come in the New Year.

For Sheepshead Bites, I’m hoping for more of the great growth we’ve seen*, more opportunities to meet my neighbors, and more ways to help you.

Speaking of ways we try to help you, I’d like to remind you all of our wonderful columnist, Daniel Gershburg. Since joining us in November, Daniel has written about Sheepshead Bay co-ops, ways to avoid fraud, money-saving tips, and a possible new real estate bubble on the horizon.

Early in January, Dan and I are going to sit down to brainstorm a list of new topics that he can tackle for 2010. So to prepare us for that meeting, I’m putting the question to you: what would you like to read about?

Leave us your questions, comments, or rants about real estate or bankruptcy issues in the area, and we’ll consider it for a future article on Sheepshead Bites. You can submit it in the comments below or e-mail it.

*Our monthly audience has grown 10 fold year-over-year. Let’s hope for another 10 fold for next year!

I don’t mean to sound like an infomercial, but… you, yes YOU, can save thousands of dollars when purchasing new construction condos in places like:

• Upper East Side
• SoHo
• Tribeca
• and even SHEEPSHEAD BAY!

Okay, enough silly gimmicks. Let’s get to the point. Continue Reading »

There is a place on Coney Island Avenue that provides “Debt Settlement Services”. I don’t know the company, and I don’t know the people who run the company. But I would imagine the business model of the company and the like goes something like this: “If you’re in credit card debt over $5,000, call us and we can negotiate with your creditors and save you THOUSANDS in interest and late payment fees.” I can guarantee that within the next few years, the neighborhood will be inundated with even more places like it. Again, I am stressing that I don’t know the people who run this place. What I can tell you, in my opinion, is that debt settlement as a business model is a complete and utter ripoff that has caused people to lose millions of dollars – and they usually have absolutely nothing to show for it. Continue Reading »

Twenty-three individuals were indicted in the Southern District of New York on allegations that they participated in an illegal scheme to defraud various banks and financial institutions by submitting fraudulent applications and supporting documentation for mortgages and home equity loans. As a result, the lenders were induced to make loans to persons and at terms that the lenders otherwise would not have funded. The defendants include brokers and processors who worked at the mortgage brokerages AGA Capital NY, Inc.(’AGA Capital‘) and Northside Capital NY, Inc. (’Northside Capital‘), in Brooklyn, New York, real estate appraisers and loan account executives.

-”Twenty Three Indicted in New York Straw Buyer Scheme”; Mortgage Fraud Blog;Jan. 5, 2007

Two ringleaders of a multimillion-dollar mortgage scam [Maurice McDowall, who directed the daily operations of the scheme, and Aleksander Lipkin, a mortgage broker who coordinated the fraudulent loans] are facing up to 30 years in prison and heavy fines and restitution after pleading guilty to bilking banks and fleecing foreclosure victims in Brooklyn

-”Two found guilty in mortgage scam and face 30 years in prison“; Daily News; June 5, 2008

I am under a fiduciary duty to my clients. I must put their interests ahead of mine. All attorneys do. The problem is, when millions of dollars were on the line in Sheepshead Bay and Coney Island, some attorneys didn’t do that. In one of the more elaborate schemes to play out in the world of real estate fraud in Brooklyn, members of AGA Capital, Inc., a mortgage brokerage on Coney Island Avenue, teamed up with attorneys, including Alexander Kaplan, Esq., real estate brokers, and appraisers in a scheme which earned millions of dollars in fees from using “straw” purchasers and filing false documents, including appraisals, earning commissions, fees, and more in the process. Many of the defendants have been sentenced to long terms in federal prison and the attorney involved lost his license and is also going to jail for some time. Worst of all, homeowners were literally robbed of their houses.

Believe it or not, this kind of thing happens every day, though usually on a much smaller scale. So what in the world are you to do if you are a purchaser in Sheepshead Bay and want to make sure your attorney is legitimate? Here are some tips to protect yourself: Continue Reading »

Real estate is a nebulous industry, filled with scams, screwballs, and the occasional sweet deal. That’s why we’ve asked a locally born-and-bred real estate lawyer to make sense of it all. Sheepshead Bay bankruptcy and real estate lawyer Daniel Gershburg will contribute a regular column about the real estate scene. His first piece gives buyers tips for getting into that coveted Sheepshead Bay apartment co-op, a segment of real estate that represents a huge chunk of sales in the neighborhood.

So you want to buy a co-op in Sheepshead Bay? But you have questions that your real estate broker refuses to, doesn’t, or can’t answer. What do you do?

Well, what I can tell you is that when you buy a co-op in Sheepshead Bay, or anywhere for that matter, the first thing you should do is do some internet research on the address. You can try looking on Trulia.com. But my search would be more general. There are tons of forums online discussing issues with co-ops. From aggrieved co-op owners complaining about poor management to lawsuits against corporations, you can find everything. But that’s just the start. You should also ask your real estate broker about whether they have had past clients in the building and if they could put you in touch with any so you can ask them about their experiences. Is this out of the box? Absolutely. But it works better than many other things out there. Do your research before you purchase a co-op in Sheepshead Bay.

But let’s take this a step further. Say I am purchasing a co-op in Sheepshead Bay. I’ve done my research, spoken to people in the building, and now I have my interview. What can I expect?

Anything. That’s right, anything. A co-op is a corporation. The board of directors are therefore making a business judgment as to whether or not you “fit in” financially and otherwise with the building. Now unless you have a habit of fighting pit bulls in your apartment, you’ll likely be fine so long as your financials are okay. Having said that, if you are rejected for one reason or another, the co-op technically does not have to disclose the reason you were rejected, other than saying, “Sorry you can’t live in this co-op in Sheepshead Bay, try Brighton Beach.” Yes, yes you can try and sue and all those good things, but it will cost you money and will usually not leave you in a better position. The best way to avoid this embarrassment is to literally be as prepared as possible. Each co-op has a “package” which has to be prepared including your financials, references, et cetera. Make sure you go over this diligently before the meeting and everything is complete. Make sure you look prepared for the meeting.

When you buy a co-op in Sheepshead Bay, when will the closing take place?

This is one of those “Why is the sky blue?” questions. There are so many variables involved here. Typically a closing for a co-op in Sheepshead Bay will take place immediately after the co-op approves the individual and the bank clears financing. There are, however, many hurdles and obstacles that your attorney will have to navigate for you. Sometimes the bank is late, or they haven’t apprised you of issues they have, which delays financing. Sometimes the board won’t meet for several months, thereby delaying the closing and causing you to make sure your rate for your loan is locked with the bank. Sometimes the management company’s attorney will request a delay in closing to make it occur at a convenient time for them. There are literally multiple variations that could delay your closing, so make sure you choose an experienced real estate lawyer in Brooklyn to help you through this. It’s not a sales pitch, it’s reality. Just ask anyone who has gone through the process.

Daniel Gershburg Esq., is a real estate and bankruptcy attorney with offices in Sheepshead Bay and Manhattan. The practice was specifically set up to change the way people view attorneys, by incorporating radical ideas like calling people back quickly, returning emails, giving clients ’round the clock access to their cases and charging low fees. For more information please visit Brooklyn Real Estate Attorney Daniel Gershburg‘s website.