Urgent warning issued as man loses his fully paid off $800,000 home over a $5,000 water bill
A homeowner who had paid off his entire mortgage found that his home was being repossessed due to an unpaid water bill.
Filmore Brown owned his $800,000 Brooklyn home, which had been foreclosed without his knowledge.
According to Brown, the foreclosure was due to an unpaid water bill for $5,000, and he shared with ABC 7 that he had been regularly paying his water bills.
Brown initially purchased his home in 1996, and he paid off his mortgage in full by 2019. Living on the top floor of a three-unit building, he also rents out the lower apartments to other people.
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While New York City's Department of Finance claim notices were sent to his home, and someone at the home was even handed court documents stating the impending foreclosure in November 2020, Brown says he never got them.
He went on to say that he knew nothing about his unpaid water bill of $5,057.71, which dated back to around 2019 (via Newsweek).
He also claims he was unaware that his house had even been put up for sale until a group of contractors appeared in the middle of the night attempting to get into the house; however, they had a legal right to be there.
"He said he didn't know anything about this and I believe him," said Brown's attorney, Alice Nicholson.
According to ABC 7 News, the city of New York had sold Brown’s water debt to a trust, which was a group of investors who wanted to recover the money and interest.
The water bill is worth just less than 1 per cent of Brown’s home, but the trust was still able to foreclose on his property to settle the debt if it remains unpaid.
His attorneys also said he has paid thousands of dollars in current taxes and water bills since the debt went to the trust.
"He just paid a water bill this year in the thousands of dollars, so it's just heart wrenching," said attorney Yolande Nicholson.
She also went on to claim that when his old bill was put into the trust, he was unable to see it on his current bills as the two systems aren't connected, adding: "There needs to be some type of notification that there's another bill out there that needs to be paid.
"There needs to be more done to make sure that these hardworking older people who paid off their mortgage and have fixed incomes don't get into that kind of rut."
Describing his home as being 'stolen from him', Brown said he doesn't want 'anybody to go through what I'm going through', adding: "I cannot eat, I cannot drink, and I cannot sleep."
In response, a Department of Finance spokesperson told ABC 7 News: "Our goal is never to see a homeowner lose their property. Last year, we implemented reforms to specifically prevent unfortunate situations like this from happening by giving property owners more time, information, and resources to resolve their debts.
"For this year's lien sale, we strengthened our outreach efforts to make sure we reached as many owners as possible, working with non-profit groups and other City agencies to conduct door-to-door visits, direct phone calls, and other targeted communications.
"Homeowners have several options for resolving their debt with the City, whether it's related to property taxes, water and sewer charges, or other municipal charges. This includes property tax exemptions for eligible residents, flexible payment plans, and other forms of assistance.
"Our priority is to connect property owners with these resources early, so they can protect their homes and avoid the lien sale altogether.
In July, the Consumer Financial Protection Bureau (CFPB) said that it wants mortgage lenders to work with homeowners instead of foreclosing their homes (via Newsweek).
The new proposal, although not yet finalised, aims to streamline the process, enabling borrowers to access communications about their debt.
"When struggling homeowners can get the help they need without unnecessary obstacles, it is better for borrowers, servicers, and the economy as a whole," CFPB Director Rohit Chopra said in a statement.
"The CFPB's proposal would reduce avoidable foreclosures and make the mortgage market more resilient during future crises."
Britt Jones