Bad economic times over the past few years have seen the foreclosure of tens of thousands of properties across New York State (as well as around the country). One corporate landlord had two commercial rental buildings located in Brooklyn. Spread across those two buildings was a ‘blanket’ mortgage of $1.1 million (the term ‘blanket mortgage’ refers to one mortgage recorded against two or more properties). The buildings fell into foreclosure as a result of the landlord’s inability to pay the mortgage loan and the general economic downturn in the area. The corporation that owned the buildings and the individual owner who signed a personal guaranty of the mortgage loan were sued in the mortgage foreclosure proceeding....(more)
By Barbara Ross
New York Daily News
Thursday, December 1, 2011
"Linda Salamon thought she won the real estate lottery last May when she bought a $400,000 one-bedroom co-op apartment on the lower East Side for $329,000 at a public auction...."
"...Salamon declined to discuss her battle, but her lawyer Richard Klass said that under state law, the co-op board cannot exercise its right of first refusal because the sale is not voluntary; it was forced by the lender.
"He also noted that Seward Park's board was notified of the auction and could have bid on the apartment when Salamon won the unit...."
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