Commercial Real Estate Loan Foreclosure, Litigation And Workout Attorneys
Last updated on July 1, 2024
Dinn, Hochman & Potter, LLC,’s commercial real estate (“CRE”) foreclosure, litigation and workout attorneys get commercial lenders and loan servicers results fast. We understand that negotiated workouts of a distressed commercial real estate loan may make sense in some instances. In those instances, our sophisticated commercial real estate transactional attorneys aid lenders and special servicers in properly and effectively documenting loan workouts.
With over 100 years of combined experience representing businesses in Cleveland, throughout Ohio, nationwide and internationally, you can trust our experienced legal team to provide the guidance and support you need.
The Guidance You Need In The Face Of Commercial Real Estate Loan Foreclosures
Facing a commercial real estate loan foreclosure can be a challenging and intricate process for any business. This type of foreclosure occurs when a business fails to meet the payment requirements of a mortgage on a commercial property, leading the lender to seek repossession of the property to recover the unpaid loan amount. The process typically starts with a formal notice of default given to the borrower, after which the property may be sold at a public auction. If the property does not sell there, the lender may take ownership of it.
The procedure involves several stages, including the acceleration of the loan, where the lender demands full repayment of the outstanding balance and not just overdue payments. If the debt is not settled, the lender will proceed with filing a foreclosure lawsuit. This legal action leads to the involvement of the courts and can result in the issuance of a foreclosure judgment if the borrower cannot rectify the situation. Following this, the property is usually sold at an auction and the proceeds go toward the repayment of the debt.
Navigating Real Estate Loan Workouts
A workout agreement presents a viable solution that can prevent foreclosure. A workout in real estate loan foreclosures is a mutually beneficial arrangement negotiated between the lender and the borrower to restructure the terms of the loan. This process is typically considered when the borrower is facing financial difficulties and is unable to meet the original terms of the loan, yet both parties wish to avoid the complications and losses associated with foreclosure.
The workout process involves several key steps, beginning with an assessment of the borrower’s financial situation and the potential reasons behind the loan distress. This is followed by open negotiations between the borrower and the lender, where terms such as the interest rate, payment schedule and loan duration may be adjusted to more manageable levels for the borrower. The goal is to modify the loan in a way that the borrower can realistically honor, securing the lender’s investment and avoiding the foreclosure process.
At Dinn, Hochman & Potter, LLC, our attorneys can help businesses and organizations through the complexities of real estate loan workouts. We provide critical legal guidance throughout the workout process, starting with a thorough evaluation of your financial status and the terms of your existing loan. Our team works diligently to negotiate terms that align with your financial capabilities while ensuring that the lender’s interests are also protected. We handle all legal documentation and ensure compliance with state and federal laws, providing a seamless path to restructuring your loan. By leveraging our knowledge and experience, property owners can find a way forward during financially turbulent times, avoiding foreclosure and maintaining their real estate investments.
Real Estate Loan Foreclosure Litigation Services
When workouts are not feasible, our experienced, results-oriented litigation attorneys focus on maximizing leverage at an early stage to obtain immediate positive returns and results on your commercial real estate backed assets and loans.
On of behalf commercial banks, investment banks, private equity funds, CMBS master and special servicers, private investors, and nonbank lenders, our attorneys have extensive experience litigating claims related to CRE loans, such as:
- Receiverships/appointment of receivers
- Structured sales
- Assignments of rents
- Deeds in lieu
- Forbearance agreements
- Modification agreements
- Reinstatements
- Assumptions
- Property management, leasing and sales
- Lender liability
- Serving as local counsel for out-of-state clients, law firms and lawyers
- Lease agreements and enforcement
- Mechanic’s liens/construction-related claims
- Investor and pooling and servicing agreement compliance
- Bankruptcy and insolvency
- Avoiding fraudulent transfer and preferential transfer claims
- Personal guarantees
- UCC financing statements
- Cash management and reserve account agreements
Whether in state or federal court, our litigation attorneys know how to navigate courts throughout the state of Ohio to provide timely results securing and seizing control of CRE backed assets to protect your interests.
Contact Our Commercial Real Estate Loan Lawyers
To arrange an initial consultation to discuss how we can help you maximize recovery on your distressed CRE asset or loan, please contact our law firm today at 440-446-1100 or by filling out our online contact form.