Many Florida residents are familiar with American film producer and mega mansion real estate developer Nile Niami, who often makes news headlines when he buys or sells a property. Niami was recently back in the news for another reason, however, which is that Hankey Capital company informed him that he is at risk for foreclosure on a loan he acquired for $82.5 million. Niami used the money to purchase a mansion that he planned to sell for half a billion dollars.
A notice of default is often a sign of things to come
As most developers understand, the market fluctuates. Niami’s plans to flip the mega mansion for hundreds of millions more than what he had invested did not work out. In fact, in the three years since he borrowed the money from Hankey Capital, his debt increased to more than $110 million. When a borrower receives a notice of default, it is typically the first step of a foreclosure process.
Lenders might agree to an alternate payment plan
It is not the first time Niami has faced possible foreclosure on a multi-million- dollar property. In this case, his lenders say there are several things he can do to keep from losing the mansion. One option is to pay back the loan in full. It is also sometimes possible to modify a payment plan (if the lender agrees) to reorganize a debt but continue to make payments.
Additional resources that may help avoid foreclosure
Anyone facing similar legal problems in Florida may want to look into options such as bankruptcy. Bankruptcy can be a valuable financial tool that, in some cases, can help a person avoid foreclosure. There is no one-size-fits-all program, however, which is why it is a good idea to consult with a legal advocate who is well-versed in real estate and bankruptcy issues.
