"Sometimes foreclosure is a family affair. The Ostad brothers, a trio of New York real estate investors, have been named as defendants in nine foreclosure suits related to loans totaling more than $70 million. Edward and Michael Ostad are named in all the cases, while Steven Ostad is named in three of them. The lender is trying to recover some money out of the Ostads personally, pointing to guaranty agreements they signed."
"In court filings earlier this year, the two painted Steven as the black sheep of the family. They claimed the youngest Ostad has never had a job and has a lifelong history of serious personal issues and self-destructive behaviors. Michael and Edward accused Steven of standing in the way of their effort to dissolve the partnerships. The youngest brother had racked up millions in judgements and debts, they alleged."
Three Ostad brothers face nine foreclosure suits tied to loans totaling more than $70 million. Edward and Michael are named in all suits; Steven is named in three. The lender seeks personal recovery under guaranty agreements after payments allegedly stopped in April, the same month Michael and Edward sued Steven to dissolve family partnerships on April 14, 2025. Michael and Edward lead Flatiron Realty Capital and describe themselves as urologists and investors. They allege Steven has long-standing personal problems, no steady employment, and millions in judgments and debts. Steven's attorney contends he was a passive investor and was shocked by missed payments. The cases remain pending.
Read at therealdeal.com
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