Company alleges a Bronx multifamily borrower defaulted on a loan and now seeks foreclosure, receivership, and full repayment in federal court
A $1.63 million commercial mortgage foreclosure in the Bronx, involving Wilmington Trust and a securitized loan, is now before the Southern District of New York.
Wilmington Trust, acting as trustee for the registered holders of Credit Suisse First Boston Mortgage Securities Corp., Multifamily Mortgage Pass-Through Certificates, Series 2019-SB61, has filed a complaint seeking foreclosure on commercial real and personal property at 1215 Brook Avenue, Bronx, NY 10456. The case, brought in the United States District Court for the Southern District of New York, names 1215 Brook LLC as the borrower, with Moshe Stein, Eliyahou Fisher, and Meyer Kaufman as guarantors. County Oil Company Inc., the Department of Housing Preservation and Development, the City of New York Environmental Control Board, and John Doe No. I through John Doe No. XXX are also listed as defendants.
At the heart of the dispute is a commercial mortgage loan, originally issued for $1,630,000 on December 6, 2018. Wilmington Trust claims the loan is part of a pool of loans held in trust, which has elected to be treated as a real estate mortgage investment conduit (REMIC) under the Internal Revenue Code. KeyBank National Association acts as the special servicer and authorized agent for Wilmington Trust, pursuant to a Limited Power of Attorney dated April 11, 2024.
The complaint alleges that 1215 Brook LLC failed to make monthly payments of principal and interest and did not keep the property in good repair, as required by the loan documents. Wilmington Trust claims these failures triggered acceleration provisions, making the entire outstanding debt immediately due. As of October 1, 2025, the unpaid principal balance is stated as $5,861,536.14, with additional interest, default interest, fees, and costs accruing.
According to the complaint, Wilmington Trust sent a notice of default to the borrower and guarantors on August 22, 2025, demanding cure by September 5, 2025. After the borrower did not cure the defaults, Wilmington Trust sent an acceleration letter on September 9, 2025, formally notifying the borrower of the default, accelerating the debt, and revoking the borrower’s license to receive, collect, and make use of rents, profits, and income from the property.
Wilmington Trust is seeking a court order to foreclose on the property, appoint a receiver, and direct that all rents, issues, and profits from the property be paid to the lender. The complaint also requests that the court declare Wilmington Trust’s lien as the first and best on the property and grant the lender immediate possession. Wilmington Trust seeks legal expenses, costs, and fees, and reserves the right to pursue a deficiency judgment against the borrower and guarantors if the foreclosure sale does not satisfy the full debt.
The complaint states that Wilmington Trust remains in exclusive possession of the original loan documents and has not transferred them to any other party. The lender also reserves the right to seek other relief, including a temporary injunction or the appointment of a receiver on an ex parte basis, as permitted by the loan documents.
While these are claims made by Wilmington Trust and have not yet been proven in court, the case offers a detailed look at the enforcement tools available to trustees and servicers of commercial mortgage-backed securities when a borrower defaults. For mortgage professionals, the case illustrates the importance of strict adherence to loan terms, the role of special servicers, and the complex remedies available in commercial lending.
As the litigation proceeds, the mortgage industry will be watching closely. The outcome could clarify the rights and responsibilities of trustees, servicers, and borrowers in securitized commercial mortgage transactions and shape the enforcement landscape for similar cases in the future.
