Zoning Appeal is part of mortgaged premises: Lender owns security interest in zoning settlement.

Judge Young, in Blue Hills Office Park LLC v. J.P. Morgan Chase, et al, --- F.Supp.2d ----, 2007 WL 755202 (D.Mass. 2007) has determined that an owner's interest in a zoning appeal is part of a mortgagee's interest in a property.  The mortgage, in pertinent part, provided that the "the words 'Mortgaged Property' shall include any portion of the Mortgaged Property and any interest therein."

In Blue Hills, Judge Young found that the plaintiff/mortgagor breached the terms of the mortgage when it negotiated a settlement in a zoning case with a neighbor for a $2 million cash payment, and then disbursed that cash to the principals of the plaintiff, all without the lender's knowledge or consent.

The "Zoning Appeal was included in the mortgaged property.  The Zoning Appeal is a cause of action related to, derived from, and used in connection with the mortgaged property.  [Plaintiff's] standing to bring the Zoning Appeal derived from its ownership of the mortgaged property."

To read the full text of the opinion, click HERE.

Comments

[Freddie Aguilar]

I found your website that captures my interest while searching the internet
for a particular keywords related to real estates. This is a very informative
blog of yours. Keep up the good work.!!! You may also check
Real Estate Investments and
TIC Investments if it interest you for
additional information's. Thank You..

http://www.hihcorp.com/

[marketingideastodaycom]

I like to do some home business which would help me make
Some money online. Can anyone suggest me some ideas for this.