Unsure Future for Apartment Bronx Foreclosures for Sale

by Peter Vernon on Foreclosure Crisis

The mortgage for several apartment buildings that are Bronx foreclosures for sale would have been transferred to a buyer a few days ago, but news have emerged that the unnamed buyer has withdrawn the offer. The apartment buildings concerned were said to be suffering from multiple violations and the deal had been criticized by tenants, housing advocates and even public officials.

The deal would have benefited the owners of the properties and the neighborhood which has seen a lot of foreclosed properties in the past two years, including Suntrust foreclosures for sale. Following news that the buyer will not take over the $35 million loan mortgage of the property, the servicer for the loan proceeded to tell a judge that, for now, the deal is off.

According to local reports, servicer LNR Property Corp. has withdrawn its motion to stop the foreclosure proceeding that it submitted prior to the buyer's withdrawal. Now, the properties are again in danger of being included in the thousands of residential structures under New York foreclosure listings.

Some real estate analysts have speculated that the decision of the buyer not to take over the Bronx foreclosures for sale was mainly due to the expected costs that repairing the properties will entail. Housing advocates have reportedly scrutinized the deal, stating that the amount that the buyer will pay will not leave much for repairs and the buildings will be likely allowed to deteriorate further.

People who are into buying bank foreclosure homes have mostly stayed away from the properties due to the number of building code violations associated with them which are estimated to be over 3,000 codes. The structures are also said to be mostly in disrepair, which means that potential buyers would have to shell out more dollars to get it up to code and in good condition again.

The apartment buildings were originally purchased by Milbank Real Estate back in 2007, with the firm hoping that rental rates can be raised to accommodate the company's mortgage. However, just like other Bronx foreclosures for sale, the properties were hit hard by the housing market crisis. Today, the structures suffer from leaks, collapsed ceilings, infestations and other forms of structural damages that resulted in over 500 of the properties' units being deemed uninhabitable.

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