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Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

    Intermediate

  • work Practice Area

    Real Property - Finance

Date & Time
  • event Date

    Friday, April 5, 2024

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    90 minutes

Credit Information

  • This 90-minute webinar is eligible in most states for 1.5 CLE credits.

$347.00
CLE
ALL

This CLE course will provide lenders' and borrowers' counsel with an overview of the benefits and limitations of real estate loan workout agreements and alternatives to foreclosure. The panel will explain best practices for negotiating forbearance agreements and minimizing risks associated with a borrower bankruptcy. The program will also discuss servicing issues and other concerns in restructuring CMBS and other securitized loans.

Faculty

Jason E. Goldstein
Shareholder, Co-Chair Mortgage Banking Group
Buchalter

Mr. Goldstein specializes in resolving complex business disputes for a diverse cross-section of clients, ranging from national banks to insureds, private money lenders, credit unions, individuals, loan servicers, landowners, pharmaceutical companies, vaping companies, equipment finance companies, brokers and investors. He is Co-Chair of the firm’s Mortgage Banking Group, a fellow of the American College of Mortgage Attorneys (ACMA) and a member of the ACMA Title Insurance Committee. Mr. Goldstein has an extensive legal background in state and federal courts across the country, which includes business litigation, real property related litigation, “private money,” title insurance claims and litigation (as well as CGL, D&O, etc.), escrow claims and litigation and misappropriation of trade secrets litigation. He also handles litigation involving wrongful foreclosure, lender liability defense, leases (commercial, residential and equipment), general contractors, receiverships and judicial foreclosures.

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John L. Hosack
Shareholder
Buchalter

Mr. Hosack focuses his transactional practice on commercial real property loan documentation, loan workouts, REO sales and foreclosures. He represents secured lenders and property owners at trial and on appeal in complex real property disputes, including lender liability, fraud, class actions, breaches of contract, wrongful foreclosures, mechanic’s liens, stop notices, judicial foreclosures, receiverships, escrow claims and title insurance claims.

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Description

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 the contract to ensure that their clients can pursue their original remedies if 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 the borrower's bankruptcy may then follow workout agreements, counsel must also be mindful of the bankruptcy implications when drafting forbearance agreements. Understanding the automatic stay is critical, and stipulations supporting relief in bankruptcy must be carefully considered.

Counsel should prepare special servicers to 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.

Listen as our authoritative panel of attorneys discusses best practices for crafting loan workout agreements that protect the parties' interests, minimize liability for lenders, and anticipate and manage risks associated with borrower bankruptcy. The panel will also discuss unique issues and considerations for special servicers of securitized loans.

Outline

  1. Alternatives to foreclosure
  2. Forbearance agreements
  3. CMBS/CLO loans and special servicers
  4. Bankruptcy risks and issues

Benefits

The panel will review these and other key issues:

  • When are loan workouts an optimal--or even viable--option for borrowers and lenders?
  • What are the critical provisions to include in the forbearance or waiver agreement?
  • What unique risks does the borrower's bankruptcy pose, and how can counsel minimize these risks in crafting loan workouts?
  • What are the specific and intricate rules that special servicers face when resolving defaulted CMBS loans?