The lender funded by Orange County Choppers new headquarters in the town of Newburgh has filed a foreclosure action against the company, alleging that she missed her mortgage payments in July.Orange County Choppers has two mortgages by GE Commercial Finance Business Property Corp., a $ 11 million and another for $ 1,500,000.
Foreclosure action claims that the chopper missed mortgage payments of about $ 96,000 and $ 14,000 on July 1 and July 27 respectively.
The mill has stopped mortgage payments, together to put pressure on lenders to modify loan terms, according to Mahon Choppers' lawyer Richard. Mahon said that if the property was built in 2007, it has been estimated at approximately $ 12,000,000. Due to the economic downturn, the building is now worth between $ 7,000,000 and $ 8,000,000, said Mahon.
"It's just a bump in the road," said Mahon. "We believe that the parties will reach a resolution and the center will continue at this point."
Orange County Industrial Development Agency is also named as defendants in the action because he was technically the property under a payment agreement in lieu of taxes, with Orange County Choppers.
