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Local Man's Real Estate Empire Crumbles

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Oct 7, 2009 9:10 pm US/Eastern

Local Man's Real Estate Empire Crumbles

PITTSBURGH (KDKA) ― It's being called the largest foreclosure on properties ever in Pittsburgh.

So far, 25 properties owned by David Grenick of Robinson are listed for sheriff sale, but dozens of others are in the pipeline.

Grenick is in default on $2.6 million in loans from 11 different lenders and banks and eventually more than 50 of his properties are expected to go to sheriff sale.

In the process, Grenick lost his mainstay business, Bloomfield Hardware, which has now closed.

"There are a lot of books that are published and a lot of TV shows which encourage people to do essentially what he's done," Rick Swartz of the Bloomfield-Garfield Corporation said.

He says Grenick fell for some of those get rich through real estate schemes, buying low-cost housing on easy credit which until the financial collapse, lenders were only too eager to provide.

Now neighborhoods are left holding the bag.

"Foreclosures will depress property values on the street. It could create some maintenance headaches for neighboring owners," Swartz said.

Grenick's properties appear to be already suffering from a lack of maintenance and upkeep. Now that the banks are foreclosing, tenants said they face uncertainty about their future.

"We hope the banks involved will reach out to organizations like ours to try to facilitate some kind of quick transition with the property, hopefully to minimize displacement and minimize abandonment," Swartz said.

Grenick did not return phone calls from KDKA-TV.  He and his wife filed for bankruptcy Wednesday.

(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)

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