Bank Notes Secured by Real Estate: Latest Opportunities and Risks for Investors and Lenders

Navigating Representations and Warranties, Lender Liability, and Foreclosure Issues

Recording of a 90-minute premium CLE webinar with Q&A

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Conducted on Thursday, March 28, 2013

Recorded event now available

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Course Materials

This CLE course will provide counsel for investors and lenders with an understanding of the key issues surrounding the purchase and sale of bank notes secured by real estate. The panel will discuss finding loans to buy and will present the best practices for negotiating and documenting the transaction.

Description

Real estate investors are continuing to take advantage of opportunities to purchase bank notes at less than face value in order to get to the underlying real estate securing the loans via foreclosure or deed in lieu of foreclosure. Note purchases offer a number of risks and rewards for investors and lenders.

Investors' and lenders' counsel should understand the process of finding loans to buy and must strategically negotiate a deal that maximizes the value of the purchase and sale to their respective clients.

Counsel must navigate potential lender liability and foreclosure issues. In documenting the transaction, counsel should carefully craft representations and warranties provisions.

Listen as our panel of experienced real estate attorneys discusses the benefits and risks of purchasing bank notes, the legal issues involved with them, and the best practices for investors and lenders when negotiating and executing note sales.

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Outline

  1. Current trends in note sales
    1. Market trends
    2. Risks and rewards of note purchases
    3. Finding a loan to buy
    4. Negotiating a loan purchase with a lender
    5. Financing a loan purchase
  2. Legal issues involved with buying notes/ best practices for investors and lenders
    1. Due diligence
    2. Documentation
    3. Representations and warranties
    4. Lender liability issues
    5. Title issues
    6. Foreclosure process and issues
    7. Receivership and other alternatives to foreclosure
    8. Effect of note sale on defaulting borrower

Benefits

The panel will review these and other key questions:

  • What business and legal factors should counsel to investors and lenders consider when contemplating the purchase or sale of bank notes secured by real estate?
  • What due diligence is necessary before purchasing bank notes secured by real estate?
  • How can counsel to investors and lenders identify and minimize legal risks when executing a bank note purchase and sale?
  • What are some best practices in negotiating the bank purchase and sale agreement?

Following the speaker presentations, you'll have an opportunity to get answers to your specific questions during the interactive Q&A.

Faculty

Thomas O'Connor
Thomas O'Connor
Partner
Duval & Stachenfeld

He specializes in commercial real estate transactions with an emphasis on real estate finance, acquisitions and sales....  |  Read More

Adriana Vesci
Adriana Vesci
Partner
Cox Castle Nicholson

Her practice focuses on the representation of investors, developers and lenders in all types of real estate...  |  Read More

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