Bank Must Pay for Repairs at Slope Building in Foreclosure
Back in May there was news about how a group of longtime tenants at 294 Fifth Avenue in Park Slope said they were living in “slum-like conditions” following a receiver being appointed to take care of the building. Now the Daily News reports that a judge has ordered the National Bank of New York City…
Back in May there was news about how a group of longtime tenants at 294 Fifth Avenue in Park Slope said they were living in “slum-like conditions” following a receiver being appointed to take care of the building. Now the Daily News reports that a judge has ordered the National Bank of New York City to pay the receiver to make repairs that aren’t covered by rent. The building went into foreclosure a couple years ago, after the landlord defaulted on a $1.85 million mortgage. Tenants say they’ve had to deal with things like the boiler not working for three weeks last winter and the front door lock being broken. Shira Galinsky, a senior Staff attorney at South Brooklyn Legal Services, said the ruling was important because it makes banks accountable “for bad lending.” The six tenants in the building who filed a motion against the lender are elderly and disabled.
Christine Quinn Touts Case Which Could Lead to Banks Being ‘Held Responsible for Bad Lending’ [NY Daily News]
‘Slumlike Conditions’ in Foreclosed Slope Building [Brownstoner]
omm, yo quiero condo.
I don’t see what is so new here….Bank makes loan, Loan goes bad, Bank forecloses and takes title. Building has violations, including serious ones like no heat, tenants sue LL (Bank), Court orders owner (Bank) to fix building (regardless of RR)
Whats new – happens everyday.
I don’t see what is so new here….Bank makes loan, Loan goes bad, Bank forecloses and takes title. Building has violations, including serious ones like no heat, tenants sue LL (Bank), Court orders owner (Bank) to fix building (regardless of RR)
Whats new – happens everyday.
this building is for sale?
“Also, no one sells a building that is making a profit”
Huh? That is completely 100% false
You are correct – however the reason why this is unique is because the Courts are taking so long with the foreclosures. Ordinarily the title would have long ago passed back to the Bank and they would be responsible for the repairs.
i.e. the legal process itself is part of the problem