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Court Postpones Foreclosure Action on Church

Chris Browne, a Member and Partner with the Firm, successfully represented the Apostolic Church of God 7th Day in a foreclosure action in which the seller of a property in Nassau County — which was purchased by the church — sought to foreclose on the church for nonpayment of taxes.

In September 2016, the church moved from its original location in St. Albans, Queens to Valley Stream, placed a 50% down payment on the $725,000 purchase price and took out a $362,500 mortgage from L&L Associates Holding Corp., the property’s seller, to be paid over three years. Two months later, the church applied for tax-exempt status with Nassau County. The church did not receive tax-exempt status until April 2017 and, unbeknownst to the church, it continued to accrue taxes on the St. Albans property during that time.

In November 2017, L&L began foreclosure actions against the church after receiving a notice of unpaid taxes from Nassau County. Although the church was able to pay off $100,000 in back taxes and wanted to continue paying the mortgage, L&L refused to accept any loan payments from Millwood. Further, the seller was seeking an additional $70,000 in interest and penalties.

On December 21, 2018, the New York State Supreme Court, Appellate Division allowed the foreclosure action to be postponed. The decision allowed the Firm to file an appeal, while the foreclosure will be pushed back to February 4, 2019.

This was reported by Long Island Business News.

Click here to read the article.


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