Christopher Milito Quoted in The Real Deal on Foreclosure Suits Involving Ostad Brothers

Partner Christopher Milito was recently quoted in an article in The Real Deal titled “Ostad Brothers Face Foreclosure Suits Over $70M in Loans.” The piece details how New York real estate investors Edward, Michael and Steven Ostad have been named as defendants in nine foreclosure actions tied to loans totaling more than $70 million. While Edward and Michael are named in all nine actions, their younger brother, Morrison Cohen client Steven Ostad, is named in three.

According to the lender, loan payments ceased in April, the same month Edward and Michael sued Steven in a separate action seeking to dissolve their family partnerships. The article notes that the older brothers have portrayed Steven negatively in their court filings, while Steven maintains that he was merely a passive investor in the properties at issue.

Christopher emphasized that the timing of the alleged non-payments raises serious questions. “We find it more than coincidental that debt service payments allegedly stopped in April of 2025 – just as Steven’s brothers sued him on April 14, 2025,” he said.

Christopher also underscored that the foreclosure complaints do not allege any misconduct by Steven, stating that “it could not, as Steven’s brothers were in exclusive control of the properties’ finances.”

The foreclosure suits stem from loans originally issued by Signature Bank before its collapse. The successor lender is now pursuing repayment from the brothers personally, citing guaranty agreements and alleged failures to remit rental income after default.

Steven Ostad is represented by Morrison Cohen Partner Christopher Milito.

Read The Real Deal article here.