Scott Weinberg Examines Protective Advances Under New York Law

In an article for the New York Law Journal, Scott Weinberg examines how mortgage lenders can use protective advances to safeguard their collateral when borrowers fail to meet obligations such as paying real estate taxes, maintaining insurance or making necessary repairs.

Scott discusses the circumstances in which these expenditures may become part of the debt secured by a mortgage, including how the terms of the mortgage and the purpose of the expenditure can affect recoverability. He also highlights practical considerations for lenders, including careful drafting, documenting the need for an advance and, in uncertain circumstances, considering advance judicial approval.

Sam Horowitz assisted in the preparation of the article.

Read the full article in the New York Law Journal.