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 guide 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 cleanup and clarification
The panel will review these and other noteworthy 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?
Pircher Nichols & Meeks
Ms. Contreras-Camua's practice focuses on sophisticated real estate transactions, including mortgage and mezzanine... | Read More
Ms. Contreras-Camua's practice focuses on sophisticated real estate transactions, including mortgage and mezzanine financing, acquisitions and dispositions of single assets, equity interests and portfolio transactions, mortgage origination for commercial mortgage-backed securitization programs, sale-leasebacks, joint ventures and leasing. She has extensive experience in representing institutional lenders, real estate funds, opportunity funds, investment banks, life insurance companies, major residential developers and other real estate investors in a broad range of real estate transactions. The real estate assets covered include full-service resorts, industrial facilities, office buildings, retail, multifamily and mixed-use projects.Close
Erin F. Natter
Pircher Nichols & Meeks
Ms. Natter’s practice focuses on sophisticated real estate finance, purchase and sales, sale-leaseback, and lease... | Read More
Ms. Natter’s practice focuses on sophisticated real estate finance, purchase and sales, sale-leaseback, and lease transactions, including the representation of institutional lenders, real estate funds, opportunity funds and other real estate investors in a wide variety of real estate transactions.Close