Bank-Owned Real Estate Approaches for Lenders and Builders

Legal Considerations When Holding or Managing REO Properties

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


Conducted on Thursday, March 8, 2012

Recorded event now available

or call 1-800-926-7926
Program Materials

This CLE webinar will provide counsel to lenders and strategic buyers with guidance impacting decisions of whether to purchase or sell real estate owned (REO) assets. The panel will examine the legal and business risks to lenders holding and operating REO properties and outline approaches to mitigate those risks.

Description

Mortgage lenders currently face the task of reducing swollen inventories of REO assets. Lenders that had to dispose of relatively few foreclosed properties in the past must now consider the options of holding or selling properties.

Counsel to lenders unaccustomed to managing large and diverse REO holdings must develop a comprehensive strategy for acquiring, operating and disposing of the REO inventory. When assets include unfinished REO properties, additional legal complexities are raised.

Listen as our panel of REO-experienced legal and business professionals explains the factors that lenders and purchasers should consider when evaluating whether to purchase or sell REO properties. Panelists will explain the risks lenders face when holding and operating REO assets and outline strategies to mitigate those risks.

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Outline

  1. REO properties
    1. Lender options
      1. Hold assets
      2. Sell assets
      3. Build out unfinished projects
    2. Purchaser options
      1. Acquire bank’s debt
      2. Acquire REO at discounted price
  2. Common REO issues
    1. Valuation issues
    2. Financial accounting
    3. Financial reporting
    4. Regulatory considerations (appraisals, holding period)
  3. Legal considerations when holding and operating REOs
    1. Survey and title
    2. Land use
    3. Successor liability
    4. Construction defect liability risks for unfinished projects
    5. When REO is unit of larger project
  4. Minimizing legal and business risks of REOs

Benefits

The panel will review these and other key questions:

  • What are the key business and legal factors in evaluating REO assets?
  • What accounting and valuation considerations are important to an REO assets strategy?
  • What are the unique legal risks to lenders who hold and operate an REO asset—and how can those risks be mitigated?

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

Faculty

Ren R. Hayhurst
Ren R. Hayhurst

Partner
Bryan Cave

He represents lenders in real estate and commercial loan documentation, real estate loan workouts and foreclosure,...  |  Read More

Don Neff
Don Neff

President
La Jolla Pacific

He is a construction quality expert with more than 25 years of experience in the real estate industry. He is a former...  |  Read More

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Strafford will process CLE credit for one person on each recording. All formats include program handouts. To find out which recorded format will provide the best CLE option, select your state:

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