Consensual Resolutions of Distressed Loans

Evaluating Modifications, Forbearance Agreements, Deeds in Lieu, Short Sales and Other Options for Loan Workouts

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


Conducted on Wednesday, May 2, 2012

Recorded event now available

or call 1-800-926-7926
Program Materials

This CLE webinar will prepare counsel to manage consensual resolution of a distressed loan, utilizing tools such as modifications, forbearance, deeds in lieu, consensual foreclosure, short sales, note sales and consensual bankruptcies. The panel will explain the impact of guarantor recourse on these negotiations.

Description

As commercial real estate borrowers and lenders realize that a quick economic turnaround is unlikely, they are more interested in options for consensually resolving distressed loans. With troubled projects, borrowers are concerned with loan default, loss of the project and guarantor recourse. Lenders will weigh whether a consensual resolution is financially preferable to the contested route. The lender is motivated to get the best return on the troubled loan with the least cost and is focused on the project's value—current and prospective.

Since borrowers and lenders approach resolution with different motivations and goals, counsel must understand the different options to achieve consensus. Armed with the benefits and drawbacks of the options for each party, counsel can facilitate negotiation of a workout for lender, borrower and guarantor.

Listen as our panel of real estate attorneys examines the ways a borrower, lender and guarantor can reach acceptable consensual resolution of a loan in distress.

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Outline

  1. Consensual loan resolution agreements
  2. Deed in lieu of foreclosure
  3. Sale of the project or the note
  4. Consensual foreclosures and bankruptcies
  5. Guarantor recourse

Benefits

The panel will review these and other key questions:

  • What are the crucial considerations for borrowers and lenders when considering the consensual resolution of a distressed loan?
  • What are the benefits and drawbacks to each party presented by the different consensual options?
  • How does the issue of guarantor recourse affect negotiations and how can it be addressed?

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

Faculty

Adam B. Weissburg
Adam B. Weissburg

Partner
Cox Castle & Nicholson

He has represented borrowers and lenders in all facets of real estate finance, including loan facilities for real...  |  Read More

Gregory G. Gosfield
Gregory G. Gosfield

Partner
Klehr Harrison Harvey Branzburg

Mr. Gosfield has a depth of experience in counseling owners, investors, and lenders on debt and equity investments...  |  Read More

Yolanda Rodriguez
Yolanda Rodriguez
General Counsel
O'Neill Properties Group

She is General Counsel of O'Neill Properties Group and a partner in O'Neill's captive law firm, Ground Work Law. She is...  |  Read More

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