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Commercial Litigation Landlord Tenant Law Litigation

Challenges for Real Estate Lenders When Borrowers Default

During periods of distress in the real estate industry, if a lender is not going to enter into a consensual workout or loan restructuring with their defaulted borrower, the lender will be presented with the choice of either enforcing rights under its loan documents or marketing and selling the distressed loan.

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During periods of distress in the real estate industry, when mortgage and mezzanine loans are being placed in default at a higher frequency, if a lender is not going to enter into a consensual workout or loan restructuring with their defaulted borrower, the lender will be presented with the choice of either enforcing rights under its loan documents or marketing and selling the distressed loan. Two recent cases demonstrate the challenges lenders may encounter when employing each of such options.

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