Rent stabilized buildings worthless?
Started by anonymous
8 months ago
Discussion about
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What happens if a building is so bad it has negative value? First the bank forecloses. Then tries to sell for something, anything, but there are no takers bc the building is a money pit and rents will never rise. Can the lender walk away and hand the building to... the city? I assume each asset would be held in a special purpose LLC, so the LLC declares bankruptcy and the lender takes a 100% write off. Or would that never happen bc someone would try to make some $$ off the building and pay the bank at least a trivial sum. Reference: https://therealdeal.com/new-york/2024/09/01/sugar-hill-loses-rent-stabilized-harlem-building-to-foreclosure/