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Lend America auctions this month on LI

Two properties foreclosed by Lend America, including this

Two properties foreclosed by Lend America, including this two-family house in Far Rockaway, will be auctioned off this month as part of the defunct Melville lender�s involuntary bankruptcy. Photo Credit: Photo by handout

Two properties foreclosed by Lend America will be auctioned off this month as part of the defunct Melville lender’s involuntary bankruptcy.

Lend America shut down in December 2009 after federal authorities filed a civil fraud suit and pulled its license to make loans insured by the Federal Housing Administration. Afterward, many Lend America refinance clients said they were saddled with two lenders’ liens on their homes because Lend America did not pay off the original loans — even though the refinancings had closed well before the company did.

Now, hunting down and selling Lend America real estate assets — its portfolio of foreclosures — may be the key to getting back a lot of money for creditors, including the refinance homeowners, said the bankruptcy trustee in the case, R. Kenneth Barnard of Wantagh.

So far, a three-family row house in Brooklyn and a two-family house in Far Rockaway (seen here) have been the only two Lend America real estate holdings found after title searches in seven New York State counties, the trustee said.

For Barnard, these two properties are just the start, because Lend America operated in 46 states: “The real estate may ultimately be the key to recovery. I have to go county by county. There are no national records for that.”

He said refinance clients can file claims in bankruptcy court.

The two foreclosures will be auctioned off Sept. 22 at the Holiday Inn in Plainview by David R. Maltz & Co., a Plainview auctioneer.

Richard Maltz, vice president for the real estate auction division, said an investor has offered $190,000 for the Brooklyn row house, which is boarded up. The first bid must be $205,000, due to rules. “It’s got potential,” he said of the property.

The Far Rockaway semi-detached house, built in 2006, has no offer so far, Maltz said. “It has some wear and tear, but, all in all, it’s a turnkey investment for someone,” he said.


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