Over one thousand renters living in derelict homes facing foreclosure will now have their problem taken up by New York City. A new landlord is pledging to make repairs worth millions of dollars according to officials of the city.
The focus is on ten buildings in Bronx that have violated over 4,800 violations of housing codes. The occupants are facing problems like collapsed ceiling, mould on walls, leaks that are the size of waterfalls and the like. The units have been purchased by one local investor.
He will correct both the decay as well as the basic structural problems that have made things worse during the long years the properties have been in foreclosure. In the courtyard of one of these buildings Christine Quinn (City Council Speaker) and Michael Bloomberg (Mayor) made this announcement.
About one year ago Quinn had met the tenants of the building here to tell them that legal action would be taken if those entities that have started foreclosures failed to attend to repairs. Last September as per court ruling the special servicer LNR Partners, representative of the investors, was ordered to finance the repairs. This ruling could have expedited the sale.
Milbank Real Estate was once managing these properties among thousands of others across America that slipped into default at the time of the housing crisis. The tenants were left in a state of uncertainty about where they would turn to when the landlords walked off from their soured investments.
There are over 25,000 rent-stabilized units only in New York City. The condition of these began to deteriorate for all to see from the start of 2010. At that point of time across the country the landlords owned over 300,000 units that were in default or were facing foreclosure.
The Milbank portfolio was bought by Finkelstein Timberger Real Estate. Steve Finkelstein of the latter said that he had plans to use $7 million or above for attending to the repairs of the properties during the coming three or four months.
The firm plans to spend $27.75 million to buy the properties; agreements have been signed to make the required repairs; limits would be placed on rent increases on the previous renters ‘” will not be over $30 per month per apartment. Part of the rent due would be forgiven; many had stopped paying because of the crumbling conditions.
Julie Thompson, has been working on ForeclosureListings.com studying the foreclosure market, helping buyers on the finer points of Middletown foreclosure listings. Try to visit ForeclosureListings.com and find all related information about foreclosure listings.