Today’s high interest rate environment presents a challenge to many commercial real estate borrowers whose loans are now reaching maturity. Some borrowers are unable to repay their loans, while others are approaching the loan...more
Background: A REMIC that forecloses on real property might appear to have an advantage over other real estate owners when operating, leasing, and ultimately disposing of that property (referred to as “REO property” once...more
Example 1. REO property is a portion (vacant retail box plus in-line shops) of a regional shopping center. Special servicer has been approached by a national retailer to purchase the vacant box leaving the REMIC with the...more
This edition of the REO Advisor examines the parameters of the REO holding or “grace period" and explores the limits of reconstruction projects at REO properties....more
This edition of the REO Advisor explores the pre- and post-foreclosure servicer strategies to allow for tenant construction activities on collateral properties, as well as the subdivision and subsequent partial sales of large...more
Question: The borrower pledged oil and gas rights related to the collateral property to the lender. The borrower has notified the servicer that it would like to sell these oil and gas rights. Can the lender approve the lease...more