Acquisition of Distressed Real Estate Debt: Due Diligence, Key Contract Provisions, Mortgage and Mezzanine Issues
Recording of a 90-minute premium CLE video webinar with Q&A
This CLE course will examine the due diligence and transactional issues involved in acquiring distressed mortgage and mezzanine debt. The panel will outline strategies to identify and mitigate risks and liabilities for both the buyer and seller.
Outline
- Purchasing and selling distressed as opposed to performing debt
- Due diligence
- Review of existing loan documents: locating originals
- Property-level issues: title, survey, environmental, property condition
- Borrowing entity
- The financial condition of borrower and guarantor
- Outstanding claims, litigation, bankruptcy
- Documentation
- Loan purchase agreement
- Mortgage
- Mezzanine
Benefits
The panel will review these and other notable matters:
- What types of due diligence must be conducted on the underlying property before proceeding with a loan purchase?
- What are the key provisions of an LPA, and how might the LPA for a mortgage loan vary from a mezzanine loan?
- How do the entity structure and financial condition of the borrower and guarantor figure into a loan purchase?
- How should ongoing litigation, or a pending receivership, be addressed in the LPA?
Faculty

Allen J. Dickey
Partner
Faegre Drinker Biddle & Reath
Mr. Dickey is a real estate and finance attorney who advises real estate funds, opportunity funds, real estate... | Read More
Mr. Dickey is a real estate and finance attorney who advises real estate funds, opportunity funds, real estate investment trusts, investment banks and others on commercial real estate transactions. He has exceptional experience in large portfolio transactions in numerous states.
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C.J. Harayda
Partner
Faegre Drinker Biddle & Reath
Mr. Harayda represents clients in bankruptcy and insolvency-related proceedings, transactions and litigation. He... | Read More
Mr. Harayda represents clients in bankruptcy and insolvency-related proceedings, transactions and litigation. He advises clients from multiple industries, including financial institutions and retailers, to guide their strategy when they encounter bankruptcy and other restructuring issues. Mr. Harayda also represents clients in bankruptcy adversary proceedings and other insolvency-related litigation. Additionally, he counsels clients regarding the purchase, sale or restructuring of assets for financially distressed companies in and out of bankruptcy proceedings, including Article 9 foreclosure sales and sales under Section 363 of the Bankruptcy Code.
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