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Lenders 360

Tag Archives: Recourse Carve-outs

Even More Bad Boy Liability Events: My List of Liability for Lender’s Losses or Damages

Posted in Good Times for Lenders, Guaranty Issues, Remedies

In addition to the events that create “full recourse” liability (for the entire loan), bad boy liability also includes losses or damages incurred by the Lender based upon another list of “bad” events or triggers.  I’m sure that Jim Wallenstein will cover this at his presentation during the University of Texas Mortgage Lending Institute. Like… Continue Reading

The List of “Bad Boy” Recourse Liability Events Keeps Growing: My “Roll Up” Version

Posted in Good Times for Lenders, Guaranty Issues, Remedies

Several months ago, I mused that, due to the conservative trending of commercial real estate lending, the list of “bad boy” exceptions (to a “no personal liability” deal) could be viewed as a full recourse deal.  In other words, the exceptions to “no liability” could be so expansive or long, the practical reality equates to… Continue Reading

Lessons Learned: Loan Documents Could Include These New Recourse Events

Posted in Good Times for Lenders, Market Trends, Remedies, Technology (including Green Buildings)

I’m keeping a list of "lessons" learned about loan documents, as I deal with all of these distressed commercial real estate loans.  It is a topic sometimes covered in various conferences. One danger in adding all of the "lessons learned" from these dark days into the the loan documents is this: loan documents will be… Continue Reading

Get Ready For This Workout Rubric: Electronic Leasing + (Green Building or Smart Building) + Social Networking = ???????

Posted in Remedies, Technology (including Green Buildings), Tough Times for Lenders, Workout Issues

Here’s a rubric that will jump out of your distressed investments and keep you awake every night this week (even if you’re a hard-core, experienced special asset manager): green buildings any building with heavy use of technology in its operating systems (a "smart building" – but not a "green building") on-line (internet) leasing (referred to as… Continue Reading

Non-Recourse Loan: How About Some Recourse In A Deed In Lieu?

Posted in Remedies, Tough Times for Lenders, Workout Issues

We’re handling more and more deed in lieu agreements, typically in these situations: state foreclosure process is very, very long (such as Florida, where judicial foreclosures clog up the courts) the parties desire to avoid publicity (in that a DIL will not hit the papers) states where the borrower has a redemption right after foreclosure… Continue Reading

Recourse Carve-outs

Posted in Guaranty Issues, Tough Times for Lenders

Real estate financing in recent times has generally involved non-recourse loans. While this is virtually a given in a conduit loan situation – the regular portfolio lenders often found it necessary to offer non-recourse loans to compete. A corollary to this basic market term, is the recourse carve-out – circumstances which trigger an exception to… Continue Reading