Thursday, June 01, 2006

Dwek's Empire Of Debt

From the Asbury Park Press:

Creditors: Dwek owes $298.1M
BY JAMES W. PRADO ROBERTS

"Eleven banks along with 42 businesses, partners, investors and others say Solomon Dwek's real estate empire owes them $298.1 million."

"The 53 claimants range from a lawn care company seeking $5,949 to Dwek's uncle, Joseph Dwek, who says he is owed $60 million, according to a Superior Court accounting released Wednesday."

"At the head of the list is PNC Bank, which filed a lawsuit May 3 that led to a flood of claims against Dwek, 33, of Ocean Township. The bank is seeking $21 million."

"The 11 banks and a mortgage company claim $149.6 million in debt, while others say they're owed $148.5 million."

"The topmost claim of $60 million from Joseph Dwek, 54, of Brooklyn is followed by Amboy National Bank, which claims $51.7 million."

"Last week, Lomurro released a list of more than 350 properties owned by Solomon Dwek, his wife Pearl, or companies he has an interest in. Robert A. Weir Jr., Dwek's attorney, has said his clients' properties are worth an estimated $300 million."

"Last month, Dwek asked the court to allow him to withdraw $23,070 a month from his assets to cover his living expenses. That amount includes $18,000 to pay three mortgages on his home, according to his request."

"Although the house was assessed in 2005 at $1.2 million, public records show the mortgages on Dwek's Crosby Avenue house total $2.4 million. That includes $850,000 in two mortgages issued by Community Bank of New Jersey in 2001 and 2004. The bank was bought by Sun National Bank."

"Washington Mutual Bank issued a third mortgage on the house for $1.5 million this January to Pearl Dwek, Solomon Dwek's wife."

39 Comments:

Blogger pesche22 said...

seems to me this guys got a problem and the banks got a little greedy. due dilegence?

6/01/2006 05:58:00 AM  
Anonymous Anonymous said...

Or the guy got greedy and now the banks have a little problem.

6/01/2006 06:06:00 AM  
Blogger grim said...

And when these properties get liquidated at auction, all of Monmouth County has a problem..

http://www.judiciary.state.nj.us/dwek/dwek_property_list.pdf

grim

6/01/2006 06:14:00 AM  
Anonymous Anonymous said...

It looks like the Moron Bankers did it again. lend lend lend and then worry worry worry later.

Now wait for the entire Ponzi scheme housing market to tumble.

if you are a buyer just wait. You can see why house prices went up to insane RIPOFF prices.

BOYCOTT BIDDING!

Do not be last bagholding fool to buy now.

Bob

6/01/2006 06:36:00 AM  
Anonymous Anonymous said...

NNJ Housing Market = Overinflated Ponzi scheme

Do NOT bail out these banks or greedy flippers or bagholders underwater.

Let'em sink.

Boooooooyaaaaaaaaa

Bob

6/01/2006 06:37:00 AM  
Blogger chicagofinance said...

Bob:

It's the cost of doing business. It's built into the mix as far as the banks are concerned. What concerns the banks more than anything else is the publicity. They will get their money and write off the rest.

It's important to us from the publicity standpoint and the perception that they should be tightening lending standards, which they will. However, driving top line growth [i.e. revenue] is of prime importance.

chicago

6/01/2006 07:03:00 AM  
Anonymous Anonymous said...

"It's the cost of doing business. It's built into the mix as far as the banks are concerned.."

The banks are under-reserving its loan loss to boost earnings short-term. When this tsunami of bad loans hits in next 2-3 years you will see it wasn't built in.

Boycott Bidding of Ripoff ponzi houses!

Bob

6/01/2006 07:08:00 AM  
Blogger pesche22 said...

so whats happens to all those
new condo s and townhouses in
monmouth,,, asbury park,, long branch monmouth beach

6/01/2006 07:55:00 AM  
Blogger DebtVulture said...

Some banks may have tightened lending standards, but many of the sub-prime spectialty lenders are still being very aggressive. We need the people that buy their securitizations to get skiddish.

6/01/2006 08:06:00 AM  
Blogger grim said...

Did anyone else do a double-take when they read Bob's last comment, or just me? :)

grim

6/01/2006 08:06:00 AM  
Anonymous Anonymous said...

Hey mister loan officer. Can I please borrow TWICE the value of the home that you will have to sell if I default. This brilliant loan officer must have failed Banking 101. You're supposed to lend LESS than the value of the securing asset. Or at least that's how it used to be.

6/01/2006 08:06:00 AM  
Anonymous Anonymous said...

Grim-

Yes, I noticed Bob's non-booyaaa answer to Chicago.

Ok, earlier my conjecture was Bob was sitting in a dark basement. Now, I'm changing that to a large corner office down on Wall Street. My guess is Bob is playing a large hedge bet against real estate and is single handily bringing down the market (kind of like Soros or the Hunt brothers).

Bob, which is it?

JM

6/01/2006 08:44:00 AM  
Blogger new 200 Mbps BROADBAND over POWER LINES said...

Real Estate market in Monmouth?ocean County is in danger of Collapse... they will tighten lending practices because of this blatant case just revealing !!!!


ZERO-DOWN !!!
INTEREST ONLY LOAN !!!

Mumbo-Jumbo loan !!!
50-yr mortgage !!!

6/01/2006 08:49:00 AM  
Anonymous Anonymous said...

Wow! If the best this guy can claim is $300MM worth of property on $298 MM debt, looks like some folks gonna lose lots of money.

PNC hands over $25MM to this guy, unsecured and then tries to tie up all his property so that they can get the money back.

Many others jump in and say their claims trump PNC because the money they lent or invested can be traced directly to the purchase money paid for real estate and that they are a common law secured creditors, albeit the paperwork (title, mortgages, etc.) is not in order.

I would think those other general creditors who are no doubt unsecured, including PNC, would seek to put this guy in bankruptcy, where I think these arguably "secured", but unperfected creditors will have no higher status that the unsecured creditors.

I wonder how much of each dollar these folks will get back?

6/01/2006 09:07:00 AM  
Anonymous Anonymous said...

behind all the booyah's, Bob is a smart dude...

6/01/2006 04:11:00 PM  
Blogger chicagofinance said...

Anonymous said...
Grim-
Yes, I noticed Bob's non-booyaaa answer to Chicago.
JM
9:44 AM


Hey - don't I get any credit here for bringing out the savant??!!

6/01/2006 08:53:00 PM  
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