Underdog Goes 54 Rounds To Keep It Local

“It’s hard for us to compete with these guys. They have big money,” rued Fair Haven’s Robert Roberts, motioning to a pair of suited speculators who stood huddled in front of a luxury sedan, whispering in conversation as they waited for a foreclosure auction to begin.

The auction — for an abandoned home at 102 – 4 Lombard St., whose previous owners’ estate had fallen behind on city taxes — was set to begin at noon. It was one of 21 foreclosure sales originally scheduled to take place around town Saturday, the first day the state allowed foreclosure sales to resume after postponing them in March due to the coronavirus.

These sales often draw at most one bidder, but more than seven had already gathered. Roberts knew that this one was going to be different.

“I’m the underdog, absolutely. They have more collateral … like I said, they own so many properties — 30 houses, 40 houses,” continued Roberts, who lives in the neighborhood and co-chairs the Ward 15 Democratic committee.

Twenty minutes, 54 bids and multiple tense climaxes later, however, Roberts was pronounced the highest bidder at the auction by Bernard Pellegrino, the court-appointed attorney overseeing the sale.

Roberts’ winning bid of $181,000 had outstripped his competition — both local and out-of-state.

If the court approves Pellgrino’’s report, the property at 102 – 4 Lombard St., which has been valued at $223,000 by a court-appointed appraiser, will now belong to Roberts.

Roberts, who deposited a check worth $18,500, will be on the hook over $7,000 in the previous owner’s unpaid taxes owed to the City of New Haven, in addition to a further $1,500 in fees and penalties owed to the Water Pollution Control Authority.

The auction marked the end of a years-long legal process that has included multiple postponements and numerous failed attempts to contact Jessica Thompson, the fiduciary of Russell T. Thompson’s estate.

After the auction, Roberts admitted that he is not sure if he will break even, given that he will also have to refurbish the property before renting it out.

“I was hoping to get it at a lower price, but I’m going to try and make it work.”

“It’s a gamble. You take a shot,” he said, explaining that he couldn’t bear to see an outsider win the bid. ​“I’m from the neighborhood, I live a block away. I can walk over, take care of the place, come cut the grass, that sort of thing. Look at how shabby the place is — I don’t want outside people coming in.

Earlier last week, the Independent had reported that the foreclosure sale will likely lead to the eviction of Harold Cruz (pictured), who has been staying at the property for free for the past three years. When asked what he would do about Cruz’s situation, Roberts — like every other bidder interviewed — shrugged, admitting that Cruz would have to leave the property.

Fair Haven vs. The Invaders

In the lead-up to the auction, the contrast was, admittedly, impossible to ignore. Seven separate parties had registered to bid for the property: most of them were New Haven residents, and some had walked out of bed and down the road to try their hand at purchasing the property. But the two agents stood out, their jet-black suits and the bright yellow New York license plates providing a constant visual reminder of the diversity of interested parties present.

All in all, over a dozen individuals had gathered on the street opposite the property, bringing with them a nervous energy that added an additional crispness to the cold fall morning air. Meanwhile, Cruz was conspicuous in his absence. Instead, a pitbull paced the gates of the property, barking at the committee and prompting Pellegrino to take the bidding to the other side of the street.

“We’re not going near the place,” Pellegrino said.

The opening bid of $21,400 for the property had been registered by the City of New Haven. With seven other bidders present, the auction quickly escalated.

Two bidders — Lewis Rodriguez, a local real estate broker, as well as a New York-based individual who declined to give his name (beyond a smirking ​“Michael Jordan”) — played a game of cat and mouse that escalated the price quickly. Once the bidding price hit $85,000, the two continued to raise the other’s bid by a margin of $2,000 – 3,000, taking the price to as high as $165,000.

Roberts entered the competition late: His first bid was at $176,000. His final one came right when Rodriguez was on the cusp of success with a bid of $180,000.

Later, Rodriguez mentioned that he had gone $20,000 above his initial cap of $160,000. He was unwilling to bid any higher. He mentioned that the bidders’ inability to fully appraise the house meant that taking on the house brought with it significant risk. ​“If you don’t do your research, you could end up bearing costs above the appraisal value.”

Roberts admitted that he might have bid too high, but said he considered that his participation in the auction was a way ​“to make a difference,” and that his winning the auction will enhance the quality of the neighborhood.

“We all want a high quality of life here,” Roberts said.

Mandy Bests 2 Other Bidders In Newhallville

Meanwhile, in Newhallville, another New York investor was outbid in a tax-foreclosure auction for an empty, rundown two-family house at 105 Shepard Ave. (picture).

Three bidders showed up to compete for the property.

One bidder represented Mandy Management, the megalandlord that already owns the adjacent property as well as many others in the neighborhood.

A second bidder was Tony Cheng. Cheng, who lives in New York, owns another property in Meriden, he said, and this would be his first foray into New Haven. Cheng spoke in rapid Spanish to his business partner, whose name he refused to disclose, about the merits of the property.

A third was named Min. ​“I’m just helping my friend because he’s busy today”. said Min, who asked to not give her last name. She was dressed in a bright yellow jacket, white sunglasses, and blue jeans. Her friend, she said, owns other properties in New Haven. He was probably going to fix this one and rent it out.

“I wouldn’t buy this,” she laughed. ​“But he would!”

According to court documents, the home’s previous owner passed away. and no heirs had appeared in court to claim the blue house.

Before the bidding, several groups gathered outside. Some looked at the house, while others quietly chatted with each other, debating the house’s value. The front door swung in the wind, and the blue paint was peeling.

Opening bids were set at $23,200.

Of the three biders, Cheng and his business partner were the first to drop out of the bidding competition, after the price rose above $61,000. Min and the Mandy representative (who declined to give his name) jockeyed back and forth

The bidding grew higher and higher. Min went in increments of $1,000; the Mandy offers increased by $4,000.

As the prices approached $90,000, Min called her friend before placing offers.

Mandy’s bid hit $98,000.

“Going once, going twice….” called out the court-appointed attorney conducting the auction, Patrick Fryer.

Min remained silent.

“Sold!”

On Monday, Mandy Management’s Yuri Gurevitch told the Independent that the company plans to take out permits to renovate the house, make it inhabitable again, and rent out the apartments.

Related story:

• Foreclosure Mill Revs Back Up