Pandemic-related threats of eviction have affected NYC residents and renters for months, leaving many facing the prospect of losing their homes or businesses. In many cases, their New York landlords are also feeling the financial strain of COVID-19.
As brick-and-mortar business has ground to a halt, property owners who took out loans to finance residential and commercial spaces are struggling to make ends meet. The real estate investors who hold those loans have had enough. Those lenders are suing landlords for falling behind on their payments.
What Happens if a Lender Attempts Foreclosure During a Pandemic
The New York Times reported in August that the delinquency rate on large commercial real estate loans had surged to 5.78 percent. Most of these cases pertain to hospitals and retail locations.
Hotels are feeling the strain as well. The Upper East Side's Mark Hotel recently faced foreclosure motions after missing two payments. The New York judge who blocked the foreclosure said that the motion was not “commercially reasonable” due to the ongoing pandemic. This type of justification is increasingly common; another New York judge recently chose to delay a foreclosure action because the suit was unreasonable “against the backdrop of the Covid-19 pandemic.”
The majority of real estate lenders are large banks and financial institutions. Historically, these types of lenders give property owners more time to manage loan payments in tricky times. It's smaller investors, such as hedge funds and private equity firms, that are getting impatient more quickly.
Unfortunately, as a full economic recovery is still years away, more and more lenders may be in a position to take action against landlords who cannot make their payments.
What to Do if Your Lender Attempts Foreclosure Motions
The lenders initiating foreclosures note that they're not being predatory. They're simply protecting their financial interests.
If you're worried about your housing costs, your unpaid rent, or foreclosure actions against your property, then you need to protect your interests as well. Contact a New York real estate attorney to learn about your best options for foreclosure defense. An experienced legal team can help you protect your residence or business from evictions, closing, and more.
There are no comments for this post. Be the first and Add your Comment below.
Leave a Comment