Foreclosed Landlords Owing Millions in Taxes
July 2nd, 2009
An investigating team has found that foreclosed landlords owe Rochester City over half a million as taxes. Char-Bren Development is one of these. It has dozens of tenants but is now facing foreclosure. The renters are now afraid of eviction.
Shane Brown is one of these tenants. He does not know what will be the next address of his family. He is a tenant in Irondequoit. With the landlord defaulting the bank is now foreclosing on the property. Brown said that he was informed by a law firm representing the bank that it would be a good idea if they started looking for alternative accommodation. Cher-Bren is the landlord. This development entity is operated by Chuck Hain and his sister Kimberly Matina. In Monroe County they are owners of hundreds of estates. They often deeded each other units. Now many of these units, including apartments are in foreclosure.
Two weeks previously 59 of the properties of Hain were auctioned by the bank. Michael Beyma, the attorney for the bank said, “The properties were rented but the bank received no payments of principal or interest, and then noticed the borrower was not paying taxes, nor insurance. So we had no alternative but to commence foreclosure to get the loan re-paid.”
The properties will be taken over by Canandaigua National Bank. The bank assures that the tenants will not be evicted and went on to explain the defaults of Hain. Beyma said, “He’d been a borrower with the bank for quite some time. His other properties did in fact have cash flow. They should have made money.”
When questioned by the investigating team, Hain has refused to comment. From records it seems that his monetary problems are now touching his own residence worth $400,000 in Penfield. It too is facing the fate of foreclosure.
Hain owes the city over half a million in due taxes. There are several cases pending against him for not having returned the security deposits of tenants. One of them is Shane Brown who claims that Hain owes him $1,000. He is doubtful about getting the money back.
Checking with other tenants it was found that the lawyers of Char-Bren said that they would soon be getting back their security deposits. Some have already got it back.
Foreclosures are negatively impacting on not only lenders, borrowers and tenants but also on the entire community in various ways.
- Fewer Foreclosures Among Low-cost Brooklyn Homes
- Bank of America is a Lagging Behind in Loan Modifications to Prevent Foreclosures
- The Aftermath of the Housing Boom is Followed by Foreclosure Doom in Homestead
- Lenders Being Legally Challenged for Activating Predatory Lending
- Foreclosures Have Made Life for CEO’s Expensive and Fraught With Fear
- With Foreclosures and Unemployment Continuing it is Doubtful if Recession is Over
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