Commercial Real Estate Portfolio and CMBS Loan Workouts: Forbearance, Foreclosure and Bankruptcy

Strafford

Workout agreements allow loans to be restructured to protect an owner’s interest in property and the lender’s investment. Counsel for both parties must strategically negotiate such agreements to ensure that their clients can pursue their original remedies in the event that the workout fails. Well-structured forbearance agreements or waivers are essential to protecting a lender’s position. Counsel representing lenders must anticipate and successfully navigate obstacles during the negotiation process and avoid pitfalls that can result in lender liability challenges by borrowers. As workout agreements may then be followed by the borrower’s bankruptcy, counsel must also be mindful of the bankruptcy implications when drafting forbearance agreements. Understanding the automatic stay is critical and stipulations supporting relief in a bankruptcy must be carefully considered. Counsel should prepare special servicers to clearly understand the specific challenges they face in their duties. Special servicers must cope with their responsibilities under pooling and servicing agreements and other rules that can challenge their goal of maximizing recovery. Counsel should also prepare borrowers for the limitations to which special servicers are subject and the range of options available to special servicers so that the parties have the best opportunity to explore realistic outcomes for a workout or resolution of distressed real estate collateral assets.
Watch Now

Spotlight

Words of wisdom for women in the workforce? Americas CMO Jill Kouri shares hers.


OTHER ON-DEMAND WEBINARS

Short Sales & Foreclosures: How Much Longer?

Homes.com

There are those agents who have found ways throughout every economic situation to adapt more quickly, implement more effectively, and benefit more immediately. Today, with nearly 25 percent of homeowners underwater and more than 1 in 7 mortgages not being paid, there are still agents who have found ways to gain market share and grow profitable businesses.

Effective Municipal Partnership How to Acquire Land and Funding

The Housing and Community Development Network

This webinar recording provides a brief background of the possibilities for community developers in New Jersey to utilize the unique window of opportunity to create affordable homes in our state. Non-profits can learn how best to collaborate with municipalities to obtain land and access affordable housing trust fund dollars. Case studies, based on successful efforts by Habitat for Humanity affiliates here in the Garden State, will provide insight and examples of best strategies to partner with municipalities. Next steps will be provided to get your non-profit to the table to offer solutions to a municipality's affordable housing obligations

Learn How to Lead a Successful Real Estate Team

HomeSmart International

Teams are the future of real estate. View this webinar as we break down three key areas of success: - The right time to start a team - The best structure for your team - Attracting the right team members

Real Estate Joint Ventures: Waterfall Structures, Developer Promote, IRR Lookback, Clawback and Catchup

Strafford

Waterfall provisions governing distributions are one of the most critical components of real estate joint venture agreements. After investors have received a return of their capital and IRR, promote payments are made to developers/managers. While promote is usually structured on a ‘‘deal by deal’’ or a ‘‘whole fund’’ basis, there are a host of variations that enable managers/developers and investors to better align distribution of profits to the joint venture’s goals. Allocation provisions must be structured to avoid phantom income associated with promote payments. Tax distribution clauses may be added to address phantom income. Other critical provisions include clawbacks, which allow investors to recoup promote payments if the investor did not receive its return on investment.