Introduction The general commercial practice for lenders is to include a contractual term imposing a greater interest rate if the loan goes into arrears. This is both an incentive and a deterrent. The borrower is motivated to keep the loan from defaulting and is, therefore, more likely to pay on time to prevent the increased […]
Tag Archives: mortgage litigation
The Loss of a Bargain in Commercial Real Estate
Background: The defendants had owned a vacant commercial property since 1989. They obtained a mortgage for $250,000 with interest at 12% per annum. Payments on the mortgage ceased entirely around 2006. The mortgagee took no steps to enforce the mortgage. In 2016 the defendants agreed to sell the property to the plaintiff for $500,000.00. The […]