Generally, when a lender forecloses on a loan, it is entitled to the full amount of principal due plus interest. This usually includes “default interest,” which is charged at a substantially higher rate than the loan interest and starts to accrue from the date the borrower is notified of the default. In a recent court … Read more
Long before COVID, New York law protected homeowners from foreclosure by requiring that lenders take certain steps prior to commencing legal action. One of these steps involves giving advance written right to notice to the homeowner. In a recent decision, a New York appellate court clarified the rules regarding notice and confirmed that lenders must … Read more
The general rule in New York is that each party to a lawsuit is responsible for his or her own legal fees. One exception to this is where the parties to a contract include a provision for attorney’s fees in their agreement. This clause typically states that in the event of a dispute, the losing … Read more
If a property owner dies with an outstanding mortgage that is in default, the lender will likely seek to foreclose on the property. However, it must take certain steps that vary depending on the type of mortgage, what relief is sought and whether the deceased had a will disposing of the property. The lender must … Read more
Many owners of cooperative (co-op) and condominium apartments serve on the Board of their co-op or condominium association as a way to exercise control over how the building is operated. Often, they assume that if they get sued for their conduct as a Board member, that the co-op or condo will pay the legal fees, … Read more
The general rule in New York is that consequential damages are not available to a seller of residential real estate when the purchaser breaches the contract of sale. Consequential damages are damages that result from a breach of contract but would not necessarily occur to every injured party; they are due to an injured party’s … Read more
When a party gifts real property to a charity, it is not unusual for them to put a condition on the gift in order to ensure the property will be used for a particular purpose. Such conditions will be encompassed in the language of the deed transferring the property. It does not matter how much … Read more
On May 26, 2020, New York City Mayor Bill DeBlasio signed a new law addressing the liability of personal guarantors for the debts of commercial tenants that defaulted due to COVID-19. Governor Andrew Cuomo had previously issued Executive Orders which prohibited the imposition of late charges and temporarily halted evictions of commercial tenants. As a … Read more
Before a party can sue in court for anything, he or she must have the standing to bring the lawsuit. To establish standing, a party must demonstrate a sufficient personal connection to and harm from the law or action challenged to support that party’s participation in the case. Essentially, courts want to know that a … Read more
When a debtor defaults on a mortgage, the lender must commence an action for foreclosure within the statute of limitations. In New York, the statute of limitations is six years and it starts running upon the acceleration of the debt following a default in payment. Essentially, when a debtor defaults, the lender “accelerates” the mortgage … Read more