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Category Archives: FAQs

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Buying Commercial Mortgage Loans isn’t Rocket Science? Right. Unless You Overlook the . . .

Posted in FAQs, Tough Times for Lenders, Training

Buying a commercial mortgage loan is NOT rocket science. There are, however, some very basic aspects of a mortgage loan that should be included or addressed in the purchase of the loan. I list a few of them below. But before we get to them, ask yourself  the question that scientists ask all the time: “what… Continue Reading

Foreclosure Myths: Urban Myths on how to STOP a Foreclosure or Void the Loan (really??)

Posted in FAQs, Remedies, Tough Times for Lenders

The topics of "stopping the foreclosure" or "voiding the loan" have a life of their own, and many in reality simply are urban myths. They are good examples of "when" and "why" a lawyer should be consulted. I hear these topics all the time – in the context of both consumer debt and commercial debt: "If you… Continue Reading

Chapter 11 Bankruptcy: Quick Tips For A Lender

Posted in FAQs, Tough Times for Lenders, Training

This is a series of blog entries in which we provide some quick answers to lenders’ frequently asked questions (FAQ).  The phrase "Chapter 11 bankruptcy proceeding" is NOT a lender friendly phrase.  Chapter 11 is a bankruptcy where the borrower\debtor intends to reorganize itself, right-size its balance sheet and then emerge from bankruptcy as a… Continue Reading

Bankruptcy & the “Automatic Stay”: How Do You “Lift” or Get Rid Of It?

Posted in FAQs, Tough Times for Lenders

This is a series of blog entries in which we provide some quick answers to lenders’ frequently asked questions (FAQ). When a borrower files for bankruptcy, all creditors are automatically prohibited from exercising any remedies against the borrower or its property.  This is called the "automatic stay."   Consequently, one initial focus of a creditor… Continue Reading

CMBS Loans: IRS Corrects Mistake & Recognizes Partial Release Provisions

Posted in FAQs, Tax Issues, Tough Times for Lenders, Workout Issues

Recently the IRS corrected a mistake inadvertently created by it in September 2009, when it made changes to the REMIC rules governing changes to CMBS loans.  One result of the 2009 change was that partial releases, expressly contemplated in the CMBS loan document, must pass the “principally secured by real estate” test for qualified mortgages at… Continue Reading

Bankruptcy and the Automatic Stay: What Does It Mean and How Does A Lender Get Around It?

Posted in FAQs, Tough Times for Lenders

  This is a series of blog entries in which we provide some quick answers to lenders’ frequently asked questions (FAQ). Although I can NOT quantify this statement, we’re seeing more and more commercial real estate go into bankruptcy.  Of course, these typically do NOT involve CMBS loans; probably because those loans typically have a… Continue Reading

Foreclosures: What Happens To Commercial Leases & Personal Property?

Posted in FAQs, Remedies, Tough Times for Lenders

This is a series of blog entries in which we provide some quick answers to lenders’ frequently asked questions (FAQ). Two of my favorite little "sayings" about distressed commercial real estate are these: It’s all about the lease (think money) Is there any collateral that is NOT real property?  Does the collateral include any personal… Continue Reading

Deed in Lieu of Foreclosure: Factors To Consider and Major Provisions In The DIL Agreement

Posted in FAQs, Tough Times for Lenders, Workout Issues

This is a series of blog entries in which we provide some quick answers to lenders’ frequently asked questions (FAQ). I’m working on several deed in lieu of foreclosure agreements right now.  So, I’m putting to use the thoughts and suggestions offered up to you here (and in prior postings) on this topic. Here are… Continue Reading

Deed in Lieu of Foreclosure: Should Lender Require a Legal Opinion? What Due Diligence Items Should Be Obtained?

Posted in FAQs, Technology (including Green Buildings), Tough Times for Lenders

This is a series of blog entries in which we provide some quick answers to lenders’ frequently asked questions (FAQ). The following questions cover deeds in lieu of foreclosure, which is a situation where borrower literally gives ownership of the commercial real estate to Lender by transferring title to Lender.   FAQ #34 – In… Continue Reading

Deed in Lieu of Foreclosure: When To Do A DIL? Any Title Insurance Issues In A DIL?

Posted in FAQs, Remedies, Single Purpose Entity

This is a series of blog entries in which we provide some quick answers to lenders’ frequently asked questions (FAQ). We’ve addressed deeds in lieu of foreclosure in the past (link).  Here is some more information on it. FAQ #32 – When should a lender (or servicer) seek/accept a deed in lieu agreement? State’s foreclosure… Continue Reading

Foreclosures: Dealing With Junior Mechanics’ Liens & Federal Tax Liens

Posted in FAQs, Tough Times for Lenders

This is a series of blog entries in which we provide some quick answers to lenders’ frequently asked questions (FAQ). Mechanics’ liens and Federal Tax Liens are two common challenges with distressed commercial mortgage loans.  Blindly charging through the foreclosure process is a mistake – even if you believe that your lien is first in… Continue Reading

Tips on Two Important Borrower Topics: Lender’s Ability to Sue Guarantor During Foreclosure and Contesting A Foreclosure

Posted in FAQs, Remedies, Tough Times for Lenders

This is a series of blog entries in which we provide some quick answers to lenders’ frequently asked questions (FAQ). The following questions focus on two issues of great importance to the commercial borrower: (i) Lender’s ability to sue the guarantor during the foreclosure process; and (ii) borrower’s ability to contest the foreclosure sale.  (Note:… Continue Reading

Answers To Basic Foreclosure Questions and A Brief Chart Summarizing Foreclosure Process In All 50 States

Posted in FAQs, Tough Times for Lenders

This is a series of blog entries in which we provide some quick answers to lenders’ frequently asked questions (FAQ). In any workout of distressed commercial real estate, ultimately the focus narrows in on the process and timing of foreclosure.  The answer varies state to state.   Here are two questions, answers and a very… Continue Reading

Diversion of Rent and Lender Liability: Bad Acts Pointing To Borrower and Lender Liability

Posted in FAQs, Guaranty Issues, Tough Times for Lenders

This is a series of blog entries in which we provide some quick answers to lenders’ frequently asked questions (FAQ). Strangely enough, I associate diversion of rent with lender liability  -  because both are common liability claims based upon "bad acts" of either a borrower or a lender. FAQ #20 – What if I think… Continue Reading

FAQ – Tips on Short Sales, Partial Payments and Partial Releases During a Commercial Mortgage Loan Default

Posted in FAQs

This is a series of blog entries in which we provide some quick answers to lenders’ frequently asked questions (FAQ).  FAQ #18 – Can I participate in negotiating a third party short sale prior to the deed-in-lieu or foreclosure, or as I exercise other remedies (where the sales proceeds are less than the loan balance… Continue Reading

Listing of Key Aspects of REO Sales Contracts – the Seller’s Perspective

Posted in FAQs, Market Trends, Tough Times for Lenders, Training

With more banks and CMBS loan servicers taking title to CRE (via foreclosure and deed in lieu of foreclosure), the amount of REO (or real estate owned) has grown – and will continue to grow and grow as CRE defaults escalate. Most REO sellers have regulatory or contractual limitations on the time periods that they can continue… Continue Reading

FAQ – Advantages and Disadvantages of a Real Property Deed In Lieu of Foreclosure

Posted in FAQs, Tough Times for Lenders

This is a series of blog entries in which we provide some quick answers to lenders’ frequently asked questions (FAQ).  While I’ve covered this subject before [link], here’s another overview of the advantages and disadvantages of taking title (to real property collateral) back from a borrower "in lieu of" doing a foreclosure. FAQ# 16 –… Continue Reading