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Staten Island Pre Foreclosures Happening Beyond Residential Market

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By : John Cutts    99 or more times read
The Staten Island Hotel is facing an unsure future following a foreclosure sale. According to local real estate experts, the sale is an example of the condition of hotels and other commercial properties in the area, with some of them currently facing Staten Island pre foreclosures.

The hotel was sold six months following its owners’ attempt to stop the property from falling into foreclosure by filing for bankruptcy. It was acquired by the new owners through one of the foreclosure auctions in Staten Island sales.

The private lenders who purchased the property are holding over $12 million of the hotel’s mortgages. The lenders include the former owner George Gellert and investors Sidney Berman and David Murray. The 187-room property used to be owned by SI Hotel Holding LLC.

Local reports revealed that the principal of SI Hotel, Leib Puretz, has other properties in the area that are facing foreclosures. Puretz reportedly filed for bankruptcy protection in 2009 to reorganize his businesses and prevent the Staten Island hotel from falling on the hands of investors who purchase home foreclosures for sale and foreclosed commercial structures.

The fact that the hotel was sold for a very low price is making property owners, who are currently in Staten Island pre foreclosures, very much aware of the condition of the real estate market in the city. The low selling price allowed buyers to save an estimated $300,000 from transfer taxes.

Reports about the foreclosure showed that no other bidders participated and that the sale did not go through the courts. This allowed the transaction to be closed quickly. The extraordinary sale circumstances surrounding the hotel were stipulated in the mortgage contract between lenders and SI Hotel. It was also permitted since the property is not a residential real estate.

Legal experts weighed in on the issue by stating that the sales procedure was unusual, but still within the parameters of New York law governing foreclosure auctions in Staten Island. Despite the foreclosure, more hotels would be opening in the island with the year, including a Best Western and a Holiday Inn Express.

Staten Island pre foreclosures continue to increase in numbers and are not just affecting family dwellings anymore. The trend is also affecting commercial buildings and hotels in the area, real estate market observers have claimed.

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