Foreclosure, Loans

Understanding Workout Agreements for Commercial Real Estate Loans in Default

Tonkon Torp LLP on 7/25/2024

When commercial real estate loans go into default, workouts are often pursued to resolve the default by agreement. What are the common forms of workout agreements? For commercial real estate borrowers in default, it’s...more

UCC Foreclosure Commercially Reasonable

Morrison & Foerster LLP on 3/7/2024

In a recent case, U.S. District Judge Edgardo Ramos ruled that a foreclosure sale governed by Article 9 of the New York Uniform Commercial Code (UCC) was “commercially reasonable” when viewed as a whole, denying claims made...more

Promissory Notes - Banking & Finance Insights: V 4, Issue 2, March 2024

Spilman Thomas & Battle, PLLC on 3/5/2024

Volume 4, Issue 2, 2024 Welcome! Welcome to the second issue of Promissory Notes - our banking and finance e-newsletter - for 2024. Business today is characterized by relentless change. To assist our clients in navigating...more

The Texas Supreme Court Has Spoken: Mortgage Servicers May Rewind and Restart the Statute of Limitations Clock Within the Same...

Hinshaw & Culbertson - Consumer Crossroads on 3/1/2024

Last week, the Texas Supreme Court answered the Fifth Circuit’s certified question as to whether simultaneous rescission and reacceleration can reset the limitations period under Texas Law by holding that “a rescission that...more

Three Major Differences Between Recourse and Non-Recourse Loans

Mandelbaum Barrett PC on 11/10/2023

Borrower / Guarantor Liability Recourse – The borrower (or guarantor) is personally liable for the full amount of the loan, including any debt remaining after the collateral is foreclosed upon and sold. To satisfy the...more

New York County Supreme Court Upholds Accommodation Pledges

White and Williams LLP on 8/28/2023

In recent years, the claim that an accommodation pledge attached to a mortgage loan effectively “clogs” a borrower’s right of redemption has been the basis of numerous civil actions in New York courts. With the case of Atlas...more

When the Levee Breaks: Understanding Key Variations in CRE Collateral and Foreclosure Processes

Goulston & Storrs PC on 8/8/2023

Following the turmoil of the Great Recession, the commercial real estate (CRE) industry generally benefitted from favorable financing conditions for more than a decade. An ocean of available capital and low interest rates...more

Appellate Court of Maryland Holds That “Loss Before Foreclosure Rule” Applies to Non-Recourse Reverse Mortgages

Rosenberg Martin Greenberg LLP on 8/3/2023

The “loss before foreclosure rule” provided for in the Restatement (Third) of Property (Mortgages) §4.8 specifies that when improvements on secured property are destroyed by fire and the loan is due and payable, where a...more

New Law Will Soon Improve Commercial Receivership Rules, Appointment Process in Connecticut

McCarter & English, LLP on 6/23/2023

Lenders, investors, and mortgage servicers will have a more favorable and standardized framework for protecting their interests in distressed debt when applying for appointments of commercial receivers beginning July 1, 2023,...more

Title (Coverage) Not Available

Cadwalader, Wickersham & Taft LLP on 2/1/2023

Two recent decisions concerning title insurance illustrate that an insured’s negligence can result in an exclusion from coverage and that title insurers generally do not owe a fiduciary duty to their insureds....more

Florida Bankruptcy Court Holds That Lenders Must Specify Post-Judgment Interest Rates in Addition to Post-Default Rates in Loan...

King & Spalding on 1/23/2023

On November 21, 2022, the U.S. Bankruptcy Court for the Southern District of Florida sustained the debtors’ objection to mortgage lender Benworth Capital Partners, LLC’s proof of claim and held that the state’s statutory...more

Acquisition of Distressed Loans: Bankruptcy Considerations and the 363 Sale

Pillsbury - Gravel2Gavel Construction & Real... on 12/16/2022

There are no shortage of bankruptcy considerations that must be understood by an incoming lender who acquires a distressed commercial real estate loan and whose borrower shortly thereafter files for bankruptcy protection. For...more

Private Credit Lenders: D&O Insurance in Times of Distress

Proskauer Rose LLP on 10/18/2022

It seems inevitable there will be an uptick in private credit defaults as economic conditions further deteriorate. What steps are you taking in terms of portfolio management to prepare for the next cycle with respect to...more

MBA Report Reveals Drop in Residential Mortgage Loan Delinquency Rate

McGlinchey Stafford on 6/16/2022

The Mortgage Bankers Association’s (“MBA”) First Quarter 2022 National Delinquency Survey revealed that the delinquency rate for mortgage loans on 1–4-unit residential properties decreased to 4.11% of all loans outstanding at...more

Sheen v. Wells Fargo Bank, N.A.: The California Supreme Court Delivers a Big Win for Lenders and Loan Servicers

Buchalter on 3/9/2022

On March 7, 2022, the California Supreme Court issued its much-anticipated decision in Sheen v. Wells Fargo Bank, N.A., holding that a lender does not owe a borrower a tort duty of care in considering a loan-modification...more

Going Green - February 2022 - Further Developments in Mezzanine Foreclosures

Cadwalader, Wickersham & Taft LLP on 2/28/2022

The New York State Supreme Court, County of New York (the “Court”) decided in Atlas Brookview Mezzanine LLC v. DB Brookview LLC, on November 18, 2021, that an accommodation pledge entered into in connection with a mortgage...more

When Is a Guaranty Claim Reduced by Recovery in a Debtor’s Bankruptcy Case?

Morgan Lewis on 2/10/2022

Consider a lender that extends a term loan in the amount of $1 million to an entity debtor. The loan is guaranteed by the debtor’s owner. If both the debtor and the guarantor become subject to bankruptcy cases, it is settled...more

Certain Foreclosure Moratoria Set to Lift on July 31

Perkins Coie on 7/29/2021

At the close of this month, certain moratoria on foreclosures and evictions are set to lift. While prior deadlines have been extended, it remains to be seen whether another continuance will be granted amidst an increase in...more

Something Special, April 2021 | Issue No. 23 - Don’t Be Cruel: Appellate Division Upholds Waiver of Fiduciary Duties But Denies...

Cadwalader, Wickersham & Taft LLP on 4/30/2021

Can contracting parties waive all common law fiduciary duties? That was one of the questions presented to the New York Supreme Court, Appellate Division, First Department (the “Court”) in 111 West 57th Investment LLC, on...more

New York State Court of Appeals Provides Guidance on Acceleration in Foreclosure Cases

Harris Beach PLLC on 3/9/2021

The New York State Court of Appeals recently provided much needed guidance to mortgagees on the issue of acceleration and determining the commencement date for the statute of limitation after acceleration in the decision...more

New York’s Highest Court Makes Key Rulings in Favor of Lenders Clarifying What Accelerates and De-Accelerates a Mortgage Debt for...

Blank Rome LLP on 2/23/2021

The New York Court of Appeals’ decision set bright-line rules that a noteholder’s voluntary discontinuance of a foreclosure action, in itself, revokes the acceleration of a mortgage debt, and a default letter stating that the...more

The Importance of Loan Underwriting When Restrictions on Bankruptcy Cannot Singlehandedly Save the Day: Sutton 58 Associates LLC...

Patterson Belknap Webb & Tyler LLP on 12/29/2020

In sophisticated real estate financing transactions, most prudent lenders attempt to deter borrowers from filing for bankruptcy before loans are paid in full by providing in loan documents that such a filing constitutes an...more

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