The homeowner who made only one mortgage payment in 23-years is finally expelled


Guramrit Hanspal (52), bought the three-bed East Meadow home in New York in 1998. Since then, it has been owned by two banks as well as a real estate firm. He didn’t have leave.

According to reports, a man who lived in his house for more than 20 years without paying his mortgage is being evicted.

Guramrit had filed four lawsuits, claimed bankruptcy seven times, and was able to avoid being forced from his East Meadow, Long Island home of three beds.

The property, which measures 2,081 square feet, was purchased by the 52-year old in 1998. Since 2000, it has been owned by two banks as well as a real estate company. However, he did not have to move.

He was able leverage the US Bankruptcy Code’s “automatic stay” rules that temporarily protect debtors from harassment, collection, and foreclosures.

Friday, February 2, 2018, was the second month since a judge found that the occupant lived in the home. The two-story house was occupied illegally.

The New York Post reports that about half a dozen sheriff’s officers turned up just before 8 am with a locksmith in tow.

After knocking at the doors but getting no response, they entered the house before the removalists worked for three hours to remove all contents.

It was said to have included a stained sofa, mattresses, box springs, broken-down IKEA shelves, chairs, a stove, a tire and a child’s electric truck.

Diamond Ridge company lawyer Jordan Katz indicated that the belongings would now be placed in storage for 30 days.

He claimed it was a “long time coming.”

Max Sold of the firm told the publication: “While this is a victory for us and we’re grateful for the ruling issued by Judge Hohauser, in a sense it’s too little too late and the damage has been done.

“I am disappointed that this individual was allowed to lie, cheat, and steal from hardworking taxpayers for greater than 23 years.”

“We’ll be lucky if we break even,”Jason Epstein of Diamond Ridge, who witnessed the eviction, said so.

He said: “I expected it would take about a year and a half and about $50,000 … It took three years and about three times that amount, plus the taxes for three years, which we had to pay.”

The company is reportedly planning to renovate the house and make repairs before selling it.

It was previously estimated that Hanspal saved at least $440,000 (£318,000) over the years, after purchasing the home on an initial interest rate of 7.375 per cent for $232,000 (£167,000).

He got the mortgage from Washington Mutual and made one payment of $1,602.37 (£1,156), with the foreclosure proceedings starting a year later, court records show.

He filed his first bankruptcy case in January 2001. Then he filed another one in November 2001. Two more in 2002. One in 2003.

He then transferred the deed of his friend to him in 2004, and he filed for bankruptcy again in 2005.

Washington Mutual collapsed in 2008, and its assets were purchased by JP Morgan Chase. Hanspal was also not able to leave the bank, and they had been involved in legal proceedings for many years.