Back in October, I wrote about the impending foreclosure of sale of Russ Gerson’s residence at 29 Alden Road, but I cautioned, “don’t ready your check book just yet: these things are usually postponed and delayed for years”. An inquiry from a reader today, asking if the auction did go through prompted me to check and, not surprisingly, it has not. The sale’s been repeatedly put off, from February, to April and the latest one, scheduled for May 26, has also been postponed.
I have nothing against Mr. Gerson; never met the man, though he does seem to be a crook, but my issue here’s with the courts. How, and why, should an undisputed $5.7 million debt, secured by a, at best, a $3 million house, not be collectable? The Bank of New York will surely go on living regardless of whether it collects a portion of this debt, and in fact, Gerson may be doing it a favor by delaying its taking ownership of a deteriorating, unlovely property, but so what? States that permit quick foreclosures digested the properties lost in the 2008 crash long, long ago, and their real estate markets proceeded. States like Connecticut, that come very close to not permitting foreclosures at all (this one’s only been going on for 3 years; many take 6 years or more), are doing the neighbors of these neglected homes no good, are allowing the civil dockets to remain clogged, and depriving lenders of their property with what amounts to a violation of their right to the due process of law.
All so that a person like Gerson can stay put, rent free? It makes no sense.
Next up: what will happen to the foreclosure sale at 1414 King Street, scheduled for July 2nd. My guess is that I’ll be writing about it a year from now.