New York Real Estate Lawyers Blog

March 1, 2012

Foreclosure Settlement Conferences in New York State

A recent article in the New York Times discusses efforts on the part of the New York State Court system to resolve foreclosure cases through settlement conferences. As discussed in a prior blog post, these settlement conferences are mandatory for residential foreclosure cases in New York State.

Despite the best intentions of the legislature and the Court system, it has proven difficult for the system to work as well in practice as it is meant to in theory. Having represented both mortgage holders and creditors at these conferences, I will discuss the situations which are most likely to arise during these meetings.

After a residential foreclosure case is filed with the Court, the Court must schedule a mandatory settlement conference within sixty days. At this conference, both the plaintiff (usually an institutional lender) and the defendant (the person who owns the property being foreclosed) are required to attend. It is highly recommended that the defendants appear in person together with their attorneys and that the lender has an attorney attend who has decision-making authority.

February 9, 2012

New York Condominium’s Pet Rules Result in Suicide for Building Resident

By Weiss & Weiss

The New York Post recently reported the tragic story of a soap opera actor who was so despondent over his building’s pet regulations that he took his own life. The New York condominium building in which he resided enacted rules pertaining to pets that forbid pit bull breeds in the condominium building. Reluctant to send his dog to a shelter, the New York resident had the dog euthanized. In a further dramatic turn, the actor committed suicide, citing his unwillingness to continue life without his best friend.

When living in multi-family housing, New Yorkers often face regulations concerning allowance of pets. If you are not an animal lover, it may be prudent to ask your real estate broker to target buildings that prohibit pets. Then, you avoid the perceived annoyance of having your neighbor’s large dog crowd the elevator and sniff you on the way upstairs after a long day at work.

On the other hand, there are many New York residents who consider pets to be part of their family and do not wish to live without them, such as our soap opera actor. While many buildings may allow cats, presuming that a resident does not have an undue number of them, dogs and more exotic animals can be an issue.

February 2, 2012

Comparing Residential Foreclosure to Commercial Foreclosure in New York State

By Weiss & Weiss

When a person or company pledges real property they own as security for a loan or debt, it is known as a mortgage. A mortgage loan generally consists of a Note, a document in which the borrower promises to pay a sum of money to the lender (usually a bank, but sometimes a private individual), and a Mortgage, a document in which the borrower pledges their ownership interest in real property as security for the mortgage.

Unfortunately, there are times when the borrower is unable to meet its legal obligations under the Note and Mortgage. When this happens, the lender has two options. The first is to bring a lawsuit on the Note alone, and, if successful, obtain a money judgment against the borrower which can be enforced for collection. The second is to bring a foreclosure proceeding against the borrower, in which the Court is asked to foreclose the real property in question. The two options are mutually exclusive; that is, the lender must choose one of the two options, and not both.

This blog entry will discuss the procedure when a foreclosure action is brought by the lender. In a foreclosure action in New York State, the end result of the proceeding is that the property being secured by the Mortgage and Note is sold at public auction to the highest bidder. If the lender is the highest bidder, it takes title to the property in question and may then obtain a money judgment against the debtor for the difference between their successful bid and the amount due on the Note, plus costs and expenses. If a third party is the highest bidder, the amount of the successful bid, up to the amount due, is paid to the lender. The third party then takes title to the property.