Multifamily properties (5+ units) are treated as commercial real estate. Lenders frequently seek receivership to control operations and collect rents. HUD/FHA-insured multifamily loans (Section 221(d)(4), 223(f), 232) have specific default procedures including mandatory HUD notice and loss mitigation. Fannie Mae and Freddie Mac multifamily loans have distinct servicing requirements. Key defenses: challenging the receiver's appointment, asserting lender failures to follow HUD multifamily default procedures, negotiating loan assumption, and using Chapter 11 bankruptcy to restructure. Tenant protections are stronger in multifamily — local rent control and just cause eviction ordinances may apply post-foreclosure. See: Commercial Foreclosure.
Apartment building foreclosure requires specialized strategies. We prepare receivership defenses and loan restructuring.
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