Crane’s Corner, sponsored in part by American River Flooring and Painting.
The year was 1998 and Guramrit Hanspal became a homeowner. Taking possession of a 3-bedroom, 2.5 bath home in East Meadow, N.Y, a nice suburban town about 20 miles east of New York City. Back then interest rates weren’t as favorable as they are today so the best deal Hanspal could get was a 30-year adjustable-rate mortgage at 7.3 percent. After making the first payment of sixteen hundred two dollars and thirty seven cents, Guramwrit Hanspal apparently decided that mortgage payments were for suckers, because he hasn’t made another one in 23 years and despite all the remedies at a banks disposal, ruining one’s credit, foreclosure and eviction, the 2 story yellow house that Guramwrit Hanspal bought in ‘98 is still occupied by Guramwrit Hanspal, and from time to time, some friends and tenants who rent from him.
As it happens, the first bank that agreed to give Guramwrit Hanspal a mortgage was Washington Mutual or WA MU, which by 2008 went belly up, one of the infamous lenders that gave us the mortgage money meltdown and a long recession. But if all of WA MU’s borrowers were like Guramwrit Hanspal, WA MU would have gone out of business years earlier.
Now, I know what you’re thinking. If this deadbeat didn’t pay his mortgage, why didn’t the bank foreclose? Oh it did. Sort of. One year after that first payment was followed by 12 missed payments, WAMU’s lawyers went to work and the property at 2468 Kenmore Street went into foreclosure. In most cases, it means moving out in shame with a badly dinged credit rating, a choice of living with relatives or a very modest apartment. For Guramwrit Hanspal it simply meant a trip to court, which was actually within walking distance of the home he no longer owned, but still lived in.
It was the beginning of a legal cat and mouse game that would see Hanspal file bankruptcy seven times and file lawsuits against three lenders, WA MU, CHASE which inherited the paper and Diamond Ridge Partners, an investment group that buys homes at a discount and quickly sells at a profit–that is until they ran into Guramwrit Hanspal, who found a legal loophole that says the homeowner and blood relatives can be evicted but any non-owner legally living there, can’t be. So, to recap, Guramwrit Hanspal rents rooms in the house to non-family members who can’t be evicted, and through the kindness of their heart–they allow their landlord, old Guramrit to live there too.
Now, the bank lawyers are starting to feel like the rich guys who get played by the Three Stooges. And for now, they’re not only being legally whipped, but they’re being also legally whipped by a non-lawyer.
How did this game go on for more than 20 years? Well, Guramwrit brought a couple of pals in on the con. First, he transferred the title to the home to one Rajender Pal, who then filed bankruptcy, protecting him for eviction for a couple years. He transferred the title to another buddy Boss Chowla, who in turn filed bankruptcy and sold the title to another character, this one named John Smith.
Chase was able to sell the property–even though who knows has the title to Diamond Ridge Partners. A couple years ago, they wanted to put the brakes on this real estate three card monte game, offering Guramwrite Hanspal twenty thousand dollars cash money. He turned them down, because since NY State and Uncle Sam have pandemic triggered eviction moratoriums, Guramwrit Hanspal and his real estate rebels don’t have to leave. So, the East Meadow House with two satellite dishes is home to some rent paying tenants and some scofflaws. For now.
Oh about that mortgage Guramwrit Hanspal took out in 1998? By not making the other 268 payments, he saved himself at least $440 thousand dollars…
Well played Guramwrit, well played!
Now This.Crane’s Corner–News and Comment. I’m Ed Crane.