Finance
A New York City property owner facing a looming balloon payment on a commercial mortgage that they cannot pay off may seek a:
AAutomatic extension from the lender required by law
BRefinance or 'maturity default extension' negotiated with the lender, or seek new financing before the maturity date✓ Correct
CForeclosure moratorium from the DOS
DCourt-ordered delay under RPAPL
Explanation
When a balloon mortgage matures, the borrower must either pay off the balance or refinance. If they cannot do either, they face a 'maturity default.' Options include negotiating a loan modification or extension with the lender, obtaining new financing from another lender, or (if those fail) working with the lender on a deed in lieu or short sale. New York has no automatic legal right to extend a balloon mortgage.
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