Update: New York Times Article:
Greetings all,
This is not easy to share this story and ask for help, but we have tried everything in our power and are still going to lose our family home of 58 years.
5 years ago (3/20), we were thinking of securing a business loan to help our son with his blossoming business and do renovation work to our family home after my parents passed away. We secured 2 brokers that started the process. During the final stages, COVID became a reality when NYC shut down our family business, and our son had a tonic-clonic seizure (grand mal seizure) and was in the ICU. The brokers, as well as this company (WBL), were relentless to close the deal, and we were unsure of what the outcome would be for our son. We trustingly and blindly accepted the deal since the brokers said that would have us out of it within a year with COVID business incentives.
Richie passed away that week we finalized, and over the next few months, we realized that we were in a bad spot with the company, paying them $2,700 a week - YES, A WEEK - with NYC restaurants being shut down. We tried to give the money back but were informed there were massive penalties of nearly 100K, so I got another job to make ends meet as best we could.
1 year passed, and our interest-only loan jumped to $3,400 a week, so we took business cash advances to try and make ends meet, and I found a 3rd job driving UBER.
After the 2nd year, there was a balloon payment of $200,000.00. This is after paying the $240,000 for a 185K loan at 60% interest.
We told them we could not afford this, and their response was, "If you can't pay, we will take your house." MY house, what do you mean? Well, apparently, we used our family home as collateral.
Next, we learned that WBL, who we signed the contracts with, used a bank called AXOS in New York so that they can bypass the usury laws.
The predatory loan they provided is also referred to as RENT-A-BANK. “Rent-a-bank” arrangements are the vehicle of choice for subprime lenders seeking to avoid state consumer protection laws. In a rent-a-bank arrangement, a nonbank lender (WBL) contracts with a bank to make loans per its specifications and then buys the loans from the bank. The nonbank lender then claims to shelter in the bank’s federal statutory exemptions from state regulation.
They started the foreclosure on our home 3 years ago. We have been battling them in court, but so far, nothing has aided us in keeping our home or stopping them. We have spent well over 40K in legal fees and, at this point, have exhausted all our financial means to keep fighting this huge company. Our NY court system has also sided with this company in an unprecedented timeframe to offer them an auction date even with our appeal in the system.
As stated, this was my parents' family home, and I was born here 58 years ago. I, along with my wife Amber, have built a new family here with our daughters Heidi and Ariel and, God rest his soul, our son Richie. I refuse to give up the fight in hopes of keeping our home as well as stopping these companies from being able to do this to other families.
The entire family works to try and keep our home and pay our bills. Amber and I work 7 days a week, her at the restaurant and me at my construction business, Uber, and any side jobs I can get my hands on.
Not just looking for help with money BUT would be very grateful if there are any lawyers out there that would be willing to put fresh eyes on our case in a pro bono situation or possibly a payment plan.
We have involved state Senators and reached out to the Attorney General but have not gotten any help thus far
Just to give you perspective -
We received $185,000 in 2020
Paid back over $240,000 by 2022
and now they want an additional $520,000 or the house is theirs.
Thank you for allowing me to share my story, and any support would be truly appreciated, even if it is just "good luck."
Our Court Information
Index #: 534172/2022
Caption: AXOS Bank v. Alfred W Urban et al
eFiling Status: Partial Participation Recorded
Assigned Case Judge: Lawrence Knipel
FIled in Supreme Court of New York Kings County
Thank You,
The Urban Family