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Foreclosures May Not Be Limited to Loan Payment Default

Lenders typically will only pursue foreclosure as a remedy for default if a borrower has defaulted on a real, economic term of the deal — that is, when the borrower has failed to pay principal or interest.However, a series of recent cases has illustrated that borrowers who default on terms of the loan which are unrelated to the debt itself may nonetheless face foreclosure.

6 minute read April 01, 2025 at 12:05 AM
By
Jeffrey B. Steiner , Scott A. Weinberg and Joel C. Haims
Foreclosures May Not Be Limited to Loan Payment Default

Mortgages play a central role in commercial real estate transactions, and the threat of foreclosure is a powerful incentive for borrowers to stay current on their loan payments.

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