Steve Croman is dealing with one more foreclosures lawsuit, this time in Midtown East.
An entity related to Dalan Actual Property filed the go well with in opposition to the infamous New York landlord. Dalan bought a portfolio of Croman’s loans in 2024.
It’s simply the newest for Croman, who’s dealing with foreclosures fits on more than $300 million in loan principals and beforehand served time for mortgage fraud.
Croman stated the lenders bought the loans with the intent to create a default state of affairs.
“We are going to settle and refinance with extra respected, institutional lenders,” he stated over textual content message. An legal professional for the lender didn’t instantly reply to a request for remark.
Croman bought the constructing at 340 East 58th Avenue by means of an affiliate in 2019 for $12.3 million. He created the holding firm whereas in jail in Manhattan, based on Gothamist. The property is a seven-story, 1917 constructing with 37 residential models.
A borrower related to Croman took out $8.2 million on the property from Axos Financial institution in 2019, with the mortgage not due till 2050.
Dalan bought the debt, together with $140 million in loans connected to 25 other Croman buildings and greater than 350 residences, in 2024.
Since then, the lender has been waging warfare on Croman. Along with the brand new foreclosures go well with, the Dalan entity, referred to as NYC Multifamily Portfolio LLC, filed suits relating to 16 properties thus far in 2026. There are 11 ongoing industrial fits between the Dalan entity and Croman’s firms and one regarding his personal home on East 72nd Avenue.
The lender has named Croman as a defendant and is hoping to gather on restricted warranty agreements that he signed.
Individually, Croman is dealing with 26 foreclosures fits from an entity related to Bellwether Asset Administration.
Croman’s properties are sometimes a minimum of partially rent-stabilized. However their areas in costly areas of Manhattan might make them extra engaging for lenders to grab.
Croman gained a status for harassing tenants, ultimately settling with the state legal professional normal’s workplace for $8 million in tenant restitution. He spent about eight months in jail for mortgage and tax fraud and was launched in 2018.
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