Russ Gerson is still with us, and his house is still with him

29 Alden

29 Alden Road. Still there.

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.

7 Comments

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7 responses to “Russ Gerson is still with us, and his house is still with him

  1. Anonymous

    1414 King on Google images–what’s comical is there’s a Mercedes SUV and a Porsche Cayenne in the driveway. Meanwhile, the house is in FC.

    Gaming the system indeed.

  2. Cos Cobber

    While certainly of lesser concern to due process, the extended foreclosure process hurts the neighborhoods by allowing houses which frequently are literally falling apart to sit neglected for as long as 4 years. The process is a joke and the cost to all is real.

  3. Libertarian Advocate

    Ohhhh…. so THAT’s what “Strict Foreclosure” means in the real world.

  4. Lord Jim

    1414 King is owned by a “hedge fund guy” deadbeat dad who hasn’t worked or earned income in at least 6 years. Instead of working for a living, or at least trying to find gainful employment, he just spends his days in court trying to extract money from his ex wives, suing business partners and lawyers (unsuccessfully), and now he’ll try to get out of paying his debts. He’s a real peach. The house was renovated without permits and with a bad handyman, and is located directly under the HPN flightpath, with 684 as your backyard neighbor. So loud outside you have to scream to have a conversation. Nothing redeeming about the house, property or location. Elderly people renting the illegal basement, a firewood guy using the property for his business and the owner’s friend (ex-stripper formerly married to a NY Ranger mom with 5 kids) all there at any given moment. If it’s foreclosed, there will be a lot of people to move out. Couldn’t happen to a nicer guy though.

  5. Greenwich Gal

    I assure you, no one is living in Russ Gerson’s house on Alden. Except maybe some racoons. Uninhabitable.

  6. Lord Jim

    1414 King had a foreclosure sign in front of it this weekend (6/11). Not a common sight in this town.