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    A Swindled Immigrant Community in Brooklyn Gets a Housing Reprieve

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    One man wanted to find a home for his aging parents to retire. One young woman’s mother wanted to raise her family there. Three families wanted their children to go to good schools.The five-story building in Bay Ridge, Brooklyn, erected on the site of a former Lutheran church, seemed to be the right fit for Asian families with modest incomes — they watched the construction with anticipation in the tight-knit neighborhood with a thriving Asian community. The developer, Xi Hui Wu, was a local whom neighbors recognized from the bank and the grocery store, and his then-wife, Xiao Rong Yang, was known as a prominent real estate agent in the area.For the next several years, tenants moved in and paid hundreds of thousands of dollars to buy their apartments. Then in 2018, each unit received a thick envelope in the mail. Inside was a foreclosure notice, and the tenants came to a horrifying realization: It was all a sham.Promissory notes and handshakes were never going to turn into deeds. For years, Mr. Wu had failed to make payments to a lender. He owed millions of dollars to the bank. And he had never received authorization from the city to turn the building into condos.That could have been the end — 20 different households, $5 million lost between them, evicted by a bank. Mr. Wu’s whereabouts have been hard to pin down, with conflicting information among tenants and government officials as to whether he fled to China or remains in Brooklyn. (Neither Mr. Wu, nor his lawyer listed in court records, could be reached for comment.)But the tenants now stand to become homeowners when the building is eventually converted to co-ops, under a deal that will be announced at a news conference on Wednesday.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      What is a ‘Zombie Mortgage’?

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      Has your mortgage come back from the dead? It probably wasn’t really gone, it was likely just hiding. For most buyers, mortgages are the cornerstone of purchasing a home. Sometimes a second mortgage is necessary, too, to cover the down payment, for instance. But what happens if that second mortgage seems to have been forgiven but actually still exists? Introducing: the “zombie mortgage.”These aren’t creatures from the underworld, but mortgages that homeowners forgot about or lenders said they would write off, but didn’t, only to reappear years later, according to the Consumer Financial Protection Bureau. As home prices continue to soar, zombie mortgages are seeing a “second wave,” said David Weber, a professor at the Creighton University School of Law. (The first wave, he said, occurred after the recession in the fall of 2008.)“The zombie nomenclature stuck because it was so catchy,” Mr. Weber said. “With these second mortgage issues that are going on right now, it’s not that they’re coming back to life. It’s just that they were laying dormant.” A homeowner might have no idea that a secondary lender is on the title to their property, Mr. Weber said, and the lender can choose to exercise their rights to the property when it becomes financially viable for them to do so. Here’s what to know about zombie mortgages and how to protect yourself. What is a zombie mortgage? The term originates from the aftermath of the foreclosure crisis in 2008 amid an increase in residential mortgage loans that defaulted, according to Andrea Boyack, a professor at the University of Missouri School of Law. Lenders would start the foreclosure process or announce a default, but never follow up because they didn’t think they would be able to recoup their investment. We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Judge Blocks Attempt to Sell Graceland, at Least for Now

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      Elvis’s granddaughter, the actress Riley Keough, had filed a lawsuit seeking to stop what her lawyers said was a fraudulent auction off her family home.Graceland will not be sold at auction, at least for now.On Wednesday, a Tennessee judge deferred ruling on an apparent attempt to sell Graceland, Elvis Presley’s former home in Memphis, but kept a temporary injunction in place that would prevent the property from going to auction imminently.The bizarre case came into wide public view this week when a lawsuit surfaced that had been filed by Mr. Presley’s granddaughter, the actress Riley Keough. In it, Ms. Keough sued to prevent what her lawyers described as a fraudulent effort to auction the home by a company claiming that Lisa Marie Presley — Ms. Keough’s mother and Mr. Presley’s daughter — had borrowed $3.8 million and put Graceland up as collateral before she died in 2023.At Wednesday’s hearing at Chancery Court in Shelby County, Tenn., the judge, Chancellor JoeDae L. Jenkins, said he needed to continue the case, in part because no one showed up in person to represent the defendants and in part because he said lawyers for Ms. Keough needed to present additional evidence.The defendants included a company, Naussany Investments & Private Lending LLC, which had scheduled a sale of Graceland for Thursday, according to court papers. The court said it had received a filing on Wednesday morning from a man named Gregory Naussany who had asked the court to continue the case.It was not clear when the next hearing would take place.Lawyers for Ms. Keough had argued that the company appeared to be a “false entity.” They also claimed that the company had presented fake documents purporting to show that Ms. Presley had borrowed the money and put Graceland up as collateral.Several attempts to reach Naussany Investments through the email addresses and phone numbers listed for the company in the court documents have not been successful.Graceland, a popular tourist attraction, is a major source of income for Elvis Presley Enterprises and the family trust, which Ms. Keough controls. More

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      Riley Keough Sues to Block Sale of Graceland, Charging Fraud

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      His granddaughter, the actress Riley Keough, claims that a company is fraudulently planning to auction off Elvis’s home in Memphis.Lawyers for the actress Riley Keough, the granddaughter of Elvis Presley, have sued to stop what they say is a fraudulent scheme to sell Graceland, the family’s cherished former home in Memphis.Court papers that Ms. Keough’s lawyers filed this month claim that a company planning to auction off Graceland is fraudulently claiming that her mother — Elvis’s daughter, Lisa Marie Presley, who died in 2023 — had borrowed money and put Graceland up as collateral. The papers say that the company, Naussany Investments & Private Lending LLC, “appears to be a false entity” and that the documents it presented about the loan were also fake.“There is no foreclosure sale,” Elvis Presley Enterprises, which operates Graceland, said in a statement, in which it also said that the lawsuit had been filed to “stop the fraud.”Graceland, a popular tourist attraction, is a major source of income for Elvis Presley Enterprises and the family trust.A representative for Ms. Keough, who controls her family’s trust, did not immediately respond to a request for comment on Tuesday. A lawyer representing Keough in the case also did not respond.Months after Lisa Marie Presley died, Naussany Investments presented documents claiming that she had borrowed $3.8 million from the company and “gave a deed of trust encumbering Graceland as security,” according to court papers filed in Shelby County, Tenn. Copies of the documents were provided to The New York Times by Elvis Presley Enterprises.Naussany Investments had scheduled a sale of Graceland for Thursday, the court papers say. But after Ms. Keough’s lawyers argued that the deed was fraudulent, the court issued a restraining order barring any sale, according to the documents. The documents say a hearing has been scheduled for Wednesday.Attempts to reach Naussany Investments through the email addresses and phone numbers listed for the company in the court documents were not immediately successful. One listed phone number was said to be no longer in service.Last year, Ms. Keough and her grandmother Priscilla Presley engaged in a monthslong legal battle that eventually left Ms. Keough as the sole trustee of the financial instrument established by her mother, the Promenade Trust.Even as bills have sometimes mounted, the family has held on to the main house at Graceland — an eight-bedroom, eight-bath Colonial revival home in Memphis that served as Elvis Presley’s personal home from 1957 until his death, in 1977, at the age of 42. The house was appraised at $5.6 million in 2021.But Graceland has become worth far more as a tourist attraction. In 2022, operations at Graceland generated at least $80 million, most of which supports Elvis Presley Enterprises. The family trust retains 15 percent of Elvis Presley Enterprises. More