LANDLORD/TENANT MATTERS IN NASSAU COUNTY

As a follow up to yesterday's blog, here is some more information I found. Standard mortgages generally do have a provision in them which allows the mortgagee (Bank) to collect rental payments which are owing to the mortgagor (Landlord) if the mortgagor defaults on his monthly mortgage payments. The sums collected are applied against the amounts that Landlord owes to the Bank - generally it would be applied first to penalties, then to interest, then if there's any left to principal. However, in New York at least, in order for the Bank to collect rent, the usual process is that they first go to court, begin a foreclosure proceeding against the Landlord, and obtain a court order allowing them to collect the rent. In most cases a "receiver" is appointed - that is, a neutral third party - who actually should collect the money and then disburse to the Bank. But as a condition of this arrangement the receiver also becomes responsible for essential repairs and maintenance - in other words, maintaining the habitability of the building. So for instance in cold weather the receiver would pay the building's oil bill (or gas bill or whatever) before he could pay the bank. That does NOT apply to nonessential services - for instance, the receiver would not be required to pay for a new paint job or something that doesn't go to habitability.