Commercial Loan Workout for Condo Projects
Here is an example of a real scenario of a Commercial Loan Workout that both parties benefited.
Mark Capaz Real Estate Construction/Finance/Mezzanine Lending/Workouts
3825 Henderson Blvd. Suite 101
Tampa, FL 33629
Phone (813) 261-3888
mark@venturesolutionsllc.com
30 years experience as Commercial Workout Attorney
Representative Experience Commercial Loan Workout
- Counsel to lender in restructuring and sale of mortgage debt on high rise office tower
- Counsel to auto parts supplier in debt restructure and sale of busines
- Counsel to mortgage lender in workout of relationship with insolvent real estate developer
- Counsel to lender in forbearance and restructure of loans to public utility
- Counsel to primary secured lender in restructuring and refinancing of manufacturer of hardwood flooring
- Counsel to primary secured lender in restructuring and refinancing of confectionary enterprise
- Counsel to primary secured lender in restructuring and refinancing of home entertainment system distributor
- Counsel to primary secured lender in restructuring and refinancing of provider of landscape services and turf and nursery products
- Counsel to primary secured lender in restructuring and refinancing of food products preparation and food canning enterprise
The Process
Meet with the borrower as soon as possible. It is a good sign if the borrower makes contact before the loan demonstrates distress. This is an opportunity for the parties to discuss ideas to remedy the situation.
Review all of the loan documents including the note, Trust Deed or mortgage, assignment of leases and rents, guarantees and security agreements. Review all documents and notes to determine the rights of the lender.
Written communication with the borrower should be carefully drafted to be certain that lenders rights are not being waived. Late or partial payments must generally be not accepted. Work with your legal council throughout the process.
If the property securing the loan is an apartment building, commercial property or other property with tenants, you will want to receive a current rent-roll and operating statements.
In addition, if the loan is secured by real property a review of the foreclosure procedures for the state and a date down of the title would be appropriate.
The parties may decide that the best alternative is to modify the terms of the loan. Modifications may include