Commercial Mortgage Modifications: Lien Priority, Title Insurance and Bankruptcy Issues
Structuring Modification Agreements While Avoiding Legal Pitfalls
Recording of a 90-minute CLE webinar with Q&A
This CLE webinar will provide guidance to counsel for lenders and borrowers on negotiating and documenting commercial mortgage modifications, while protecting their clients’ interests against potential lien priority challenges, title pitfalls and bankruptcy issues.
- Popular objectives and current trends for loan modifications
- Modifying loans for construction that stalled then re-started
- Extending maturity date; changing or removing extension options
- Adjusting loan amount; obligatory vs. optional advances
- Changing interest rate; bifurcating the rate
- Modifying payment provisions
- Changing, adding or releasing collateral securing the loan
- Modifying disbursement provisions to re-start a dormant construction project
- Key legal considerations to address with a loan modification
- Priority issues, including the effect of intercreditor agreements
- Title insurance—creditors' rights exclusions and available endorsements
- Title insurance—changes in mechanics' lien protections for lenders and related issues impacting borrowers and guarantors
- The threat of bankruptcy, and documenting the possibility
- Documentation strategies
- Role of third parties
- Recordable and non-recordable documents
- Loan clean-up and clarification
The panel will review these and other key questions:
- What lien enforceability issues must lenders consider when amending or modifying a commercial mortgage loan?
- How has the national title insurance companies' decision to discontinue creditors' rights coverage impacted mortgage modification transactions?
- What is the optimal title insurance coverage in a modification transaction?
- What bankruptcy issues should lenders and borrowers anticipate and proactively protect against in the mortgage modification documents?
Following the speaker presentations, you'll have an opportunity to get answers to your specific questions during the interactive Q&A.
David R. Brittain
His practice includes real estate development, transactions and finance, commercial leasing, and condominium law. He... | Read More
His practice includes real estate development, transactions and finance, commercial leasing, and condominium law. He has rendered third party legal opinions to numerous lenders as borrower counsel in complex financing transactions involving real property. He was past co-chair of the legal opinions committee, and author of an opinion standards report, of the Real Property Section of the Florida Bar.Close
Anthony A. Arostegui
His practice is focused on complex real estate transactions involving acquisition and divestment of real estate,... | Read More
His practice is focused on complex real estate transactions involving acquisition and divestment of real estate, commercial leasing and real estate lending. Recent experience includes representing governmental and institutional tenants, lenders, borrowers, receivers and trustees in connection with loan workouts and modifications; and judicial and non-judicial foreclosures; and retail developers.Close