New-York tribune., 1907-11-13
TO SHIELD LOT BUYERS.
SAYINGS UNPROTECTED.
Easy Payments" S5cdHo7oed by
Mortgages-LegisIation Wanted.

Steps have been taken 10 protect buyers of
lots on the monthly payment plan. 1t is esti-
mated that over one hundred thousand persons
have bought since January. 1905, suburban lots
what known as easy terms and that
the total sum which they have agreed TO pay for
the property is over SGOOOoONO These lot
buyers must rely entirely on the honesty Of the
individuals syndicates which hold title TO the
lard there are no legislative acts which
safeguard their interests
How risky is lot buying on the easy payment
plan in this state shown few days ago
when syndicate controlling a tract Of land on
Long Island was unable to pay the interest due,
and a mortgage on the land was foreclosed The
land some months ago was cut up into lots and
sold TO about five hundred working people on
terms of about SO down and 81 month Many
Of these persons had taken all their savings
from the tanks, and with the money paid q
large part Of the purchase price. As they had
simply agreed 10 buy, they had only contract
setting forth that all right. title and interest
n the property would be held by them on full
hluent Of their contract.
These people lost every cent they had paid
on their contract. and the only legal redress
they have is TO get a Judgment against the de-
fendants in the foreclosure action. This Is only
one OF a number OF similar cases which have
recently resulted in severe financial losses 10
wage earners who have bought lots on the easy
payment plan Holders of contracts TO buy
lots in a tract which has changed ownership
through mortgage foreclosure have no claim
against the new owners of the land and If they
Get judgments against the former owners they
may be able to have the debtors sent to prison.
bpt have little chance Of getting part of their
savings back
The majority Of Manhattan and Bronx realty
leaders will not stand for peculiar business
methods in land operations. and they are in
censed at the prospect of thousands of little
buyers suffering through foreclosure sales Of
land which has been marketed in lots. Robert
e Simon, vice-president of the Henry Morgen-
thau Company. one of the most successful realty
leaders of the local market, said yesterday that
the attention of Clark Williams. superintendent
of the state Banking Department, had been
called to these foreclosure sales.
II have suggested 10 Mr.. Williams said Mr..
Simon that the syndicates which sell lots on
the easy payment plan should be under the
Jurisdiction Of the State Banking Department.
The buyers think that the contract which they
sign Is practically deed TO q lot or lots but
it's face value is only to be measured by the
honesty or dishonesty of the people identified
with tho syndicate. have received word from
the state Banking Department that the subject
would be carefully considered later as its en-
tire staff was now busy on straight banking
business.
THE persons who hold such lot contracts
can rest assured that in few months their
interests are likely to be protected by a legis-
lative act A law which would probably cover
such operations would be one which would
make it compulsory for the owner to set aside
a sum sufficient TO pay the interest on whatever
mortgages are the land and 10 pay the sum
of the mortgages when they arc due