Brooklyn, NY – Hasidic Land Search Company Talks Of Credit Crunch Pain

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    Brooklyn, NY – It was a climate of “anything goes, everything goes up and we won’t ask too closely if it’ll ever come down” that brought on the credit crunch.

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    Inside Wall Street’s cathedrals to finance, bankers forgot the basic ground rules, lending with little restraint and very few questions. Unsurprisingly, consumers joined the frenzy. There was easy access to credit. It seemed like a short cut to the American dream.

    The only problem is, it wasn’t built to last.

    Foreclosures have gone up in New York by 40%. There is a new poor underclass: these are not people who don’t have jobs. They’re people who are in full-time employment, but simply can’t keep pace with rising costs.

    On the other side of this coin is Joel O. from Brooklyn NY. He watched the mortgage companies spread the money.

    “Every lender was, like, throwing money out the window. I mean, it was the easiest thing to get approved for a mortgage,” he says. “You didn’t even need to have good credit or even documentation of your income.”

    And he rode high off the back of it. His company carries out land searches for the mortgage companies.

    The boom years were good to him – he was able to buy his own house with a small loan from the bank.

    “You would rush to the county court to be here nine o’clock,” he says.

    “There would be a line, almost like a fistfight to get to the computer, just get the work done.”

    That was only a year ago, but now he remembers it as a golden age.

    The corridors at Nassau County court are empty now. There’s no-one fighting for the computers. In fact, some haven’t even been switched on.

    His own business has plummeted by more than 75%. Now he’s the one taking risks. He’s borrowing against his home to keep his company afloat. He’s already put in tens of thousands of dollars.

    “I should have seen it, should have been more careful” “I took my own credit to make ends meet, to pay expenses, to pay the payroll, pay all the necessary stuff.

    “It would be disastrous when I sit down and look at the numbers. I’m hesitant to sit down and do it.”

    Just a month after business started to go down, his five-year-old son Lazar was diagnosed with leukaemia. Joel is relying on credit, but he hasn’t told his family the extent of his gamble.

    “I’m even going as far as using up my home equity and credit line to put into my life, so it wouldn’t affect us personally. Because now especially, my wife and children, they need my support. I don’t want to show them that they’re missing out on something in this time of need.”

    He says he should have prepared better. He smiles nervously as he admits his home is now his only back-up.

    “I should have seen it, should have been more careful – I did one good investment, I bought my own condo, and hopefully it’ll stay mine, even though I’m using my own credit line. “I’m trying, trying and I’m not at the bottom end yet with that situation.


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    9 Comments
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    J. Fan
    J. Fan
    15 years ago

    Yup! J. can make it to Holywood, Forget about A. Karpen, You’re the MAN!!

    Perhaps you’d be able to buy your own house, not just a flat…

    Anonymous
    Anonymous
    15 years ago

    I am sorry to hear about you son’s leukaemia. Me have a refua shalama – A good book was just released by ArtScroll – Pick it up I am sur it will give you Chizik – The book is called MIRACLE RIDE by Tzipi Caton a cancer surviver.

    Anonymous
    Anonymous
    15 years ago

    I am sorry to hear about you son’s leukaemia. May he have a refua shalama – A good book was just released by ArtScroll – Pick it up I am sure it will give you Chizik – The book is called MIRACLE RIDE by Tzipi Caton a cancer surviver.

    Oy Gevald
    Oy Gevald
    15 years ago

    Best Wishes for a Refuah Shelama for your Yingele. Gefen = Gezunt, Parnasah, Nachas.

    bigwheeel
    bigwheeel
    15 years ago

    Anon 11:39 & 42 (who, I think are the same person)

    Your good wishes for a Refuah Sheleymah are well taken ,(I’m sure, by the family). However, the child will not be on his way to a cure by merely purchasing and reading a book. A lot more needs to be done! i.e. Saying a lot of Tehillim and organizing a fund for treatment!

    Howard    Blipsky
    Howard Blipsky
    15 years ago

    We feel for your kid that is sick but your poor decision in busness is YOUR fault.

    This is not about that you should have seen it coming. Everyone knew it would come but YOU did not care at the time. Like many others, everyone thinks they will be the lucky one to make it.

    You ever see people at the lottery line? Every single person buying a lottery ticket thinks they will be the one and tell the people in front of the line and in back of the line they are wasting their time in buying a ticket.

    You should only have nachas, gezunt and get out of the mess that your in. To the people that do not learn from this story we will never feel bad for you.

    Stop buying homes for 800,000.

    Stop driving the car to go to shul around the corner.

    Stop eating out at restaurants every night.

    Stop getting parking tickets. Stop using the credit card like it’s a money tree.

    Stop spending 12,000 for the summer bungalow.

    Start making wise and conservative money decisions and then you will have all the people on this blog feeling bad, giving chizuk and saying tehillim for people like you.

    Happy Holidays.

    J. Fan
    J. Fan
    15 years ago

    This Howard Blipsky is one hell of an educated person who makes no mistakes in life. Good for you!!

    Sorry that you live in this pathetic world..

    Anonymous
    Anonymous
    15 years ago

    howard! what a wise guy! listen up u genious, u really think anyone is interested what u have to say? is this the only advise u can offer for this poor guy? rather just shut up, u have no human feelings!

    Yoelish
    Yoelish
    15 years ago

    Howard, your advise seems a bit misplaced; you apparently did not get this story.

    This entrepreneur was merely featured as an illustration of the rise and fall of an obscure industry intrinsically linked to the credit market. The story didn’t elaborate as to how successful he was during his peak, or how little he’s now earning. It didn’t report that in his heyday he chose to live a lavish lifestyle. In fact, it didn’t even say whether he overpaid on his condo or got a bargain.

    These are all assumptions you chose to make.

    But, frankly, your gambling analogy is outrageous! I mean, did you AT ALL pay attention to this report?

    Apparently, this business is based on a simple, conventional business model, and it also requires constant hard work. This guy’s entrepreneurial spirit ought to be celebrated! And the fact that his business’ success was tied to a specific industry – the housing market – does not make it a ‘risky’ move. If I may challenge you, Howard, how is his business different from a clothing store that ‘gambles’ its success on a society’s desire to dress?