A checklist for foreclosed commercial property

Article Abstract:

Foreclosures are becoming common in the troubled real estate industry due to decreasing property values. Creditors should thus take time to analyze the asset to be foreclosed to make the most from its sale. This process does not differ from credit analysis procedures, and should focus on trouble areas such as title, survey and environmental problems, availability of utilities, permits, zoning and lease contracts. Although uncommon, these problems can cause the property to lose its value. Legal complications arising from these problems can divert the lender's attention from the real purpose of the foreclosure, which is the asset itself.

Management, Valuation, Foreclosure, Real estate appraisal

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Special workout considerations for loan participants

Article Abstract:

A lending institution as participating interest holder in a particular mortgage loan is examined. A participating interest is an agreement wherein a loan is offered to a borrower by a lender who also sells an undivided interest in the loan to the purchaser. In studying a defaulted participating loan, the loan relationship of the originating lender and the borrower and the participation relationship of the lead and its participants should be considered. Certain things a participant might think of after default and before agreeing to the lead's restructuring suggestions are presented.

Mortgages

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Nonrecourse real estate loans: dead or alive?

Article Abstract:

Most of the consummated real estate loans in the 1980s have the borrowers' personal guaranty or signature. It was the traditional banking practice to obtain personal culpability for loan approval. Such properties, however, are now in the possession of the lenders due to the borrowers' bankruptcy. Thus, the defaulted loans in the 1990s might cause the denial of nonrecourse loans although it is possible that nonrecourse real estate lending may become the standard in the future.

Economic aspects, Real estate, Nonrecourse debt

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