New York Community unloads mortgages on Bronx properties, angering city officials

May 18, 2011 03:45PM

New York Community Bank has unloaded the mortgages on Van Cortlandt Village, three foreclosed Bronx buildings on Sedgwick Avenue, in the latest in a series of note sales on distressed properties by the bank, according to Crain’s. It has sold mortgages on three dozen distressed buildings in the last year, said RuthAnne Visnauskas, deputy commissioner for development at the city’s Housing Preservation and Development, angering city officials and housing advocates.

“There’s obviously nothing wrong with a bank selling a mortgage,” Visnauskas told Crain’s, but “there should be more involvement on the side of the bank to make sure violations are getting corrected.”

Built in the 1920s, Van Cortlandt has had 919 violations, 731 classified as serious. The mortgage went into foreclosure in March, with a principal balance listed as $19.5 million.

City officials were particularly angered by this sale as they had been working towards getting the property sold at a price that would allow for repairs. HPD had provided the bank with a list of city-approved buyers. [Crain’s]