Ten commandments of avoiding lender liability in a workout: some guidelines for lenders when negotiating workouts

Article Abstract:

Ten commandments or suggestions by which lenders can protect themselves from lender liability lawsuits are presented. Juries are mostly sympathetic to borrowers due to the economic downturn, so that lenders should take protective measures when a loan becomes dubious. The commandments are, lenders should not make sudden moves, should not lie, should not run the borrower's business, should honor commitments, should not waive any rights, should not rely on workout specialists, should not be arrogant, should maintain clean files, should maintain professional relationships with borrowers and should take what they can get.

Lender liability

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Greater efficiencies needed in bank loan process

Article Abstract:

Many commercial banks are in financial trouble because of the problems they have encountered with their real estate loans. Bankers tend to blame developers and government regulators for their predicament, but they are partly to blame because of poor information management affecting their real estate lending processes. Banks should change their internally-oriented credit management information and decision systems to a market-oriented process where social, financial and economic information are actively taken into account.

Commercial Banks, Methods, Banking industry, Usage, Strategic planning (Business), Information systems

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Tax considerations for owners of troubled real estate

Article Abstract:

The taxation of distressed real estate projects are discussed. Investors and lenders have several options to consider in negotiating restructure of loans. These include the reduction of debt while the title to the property remains with the mortgagor, altering the conditions of a mortgage without transfer of property, foreclosure, the lender gets the deed to the property instead of foreclosure and when a mortgagor deserts a property. The tax consequences of each option are discussed.

Real property Taxation

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