If and when real estate market values shift, the loan to value predicates of the original loan underwriting can be subjected to severe stress. Developing an action plan on the secured creditor side does not occur in a vacuum. Different types of lenders (regulated versus private) have different time and loan portfolio considerations. Almost all lender action plans come up against borrower action plans (chapter 11 filings, stripping of the rental cash flow, etc.)
Borrower defaults need to be vigilantly and decisively dealt with by real estate lenders. Triggering the enforcement of the assignments of rent so as to trap the income stream for the immediate benefit of the lender needs to be pursued.
Arizona recently adopted the Uniform Commercial Real Estate Receivership Act (hereafter “the Act”) which permits real estate lenders to have a receiver appointed to take possession of their real property collateral security and personal property collateral after default but before a foreclosure can be completed. The receiver displaces the borrower or the borrower’s designees (i.e. a management company) from having control over the rental income and the operation of the collateral security which enhances lender protection as required under the discrete facts of each lending situation. Waste, deterioration or other immediate harms to the collateral security can be averted.
The attorneys of the Rose Law Group have the experience to meaningfully oppose borrower action plans which have as their goal only delay without providing any material enhancement or benefit to the lender. This experience extends to representing lenders in borrower chapter 11 bankruptcy reorganizations in which the borrower is seeking to “cram down” its lender. This bankruptcy experience includes prosecuting motions to dismiss bankruptcy cases for lack of good faith, motions to lift the automatic stay for lack of equity or other cause, motions to appoint an examiner or trustee in the event of mismanagement or fraud, opposition to the confirmation of chapter 11 plans of reorganization, Section 1111 elections, protection of secured creditor credit bid rights in the context of Section 363 sales and prosecuting and defending a whole host of different types of adversary proceedings as well as conducting fact discovery as required pursuant to Bankruptcy Rule 2004.
Where the loans are with recourse and the foreclosure sale implicates a deficiency, post-foreclosure deficiency litigation will be brought on the lender’s behalf within the required statutory limitations period. In concert with its lender clients, expert appraisal data will be generated in support of the foreclosure bid price and the amount of the deficiency. Where there are guarantors, any and all permissible actions on the guaranties will be pursued on behalf of the lender.
Attorneys of the Rose Law Group team possess numerous credentials attesting to their expertise and specialization in sophisticated real property lending defaults, foreclosures and deficiency and guaranty recoveries.
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In The News
Chandler approves data center ordinance following input from Rose Law Group Senior Partner and Real Estate Transactions Department Chair, Cameron Carter
(Via City of Chandler) By Ron Davis | Phoenix Business Journal Chandler City Council approved ordinances Monday for a new provisions on data center development and a new downtown mixed-use development. Council unanimously voted to collectively approve adoption of a zoning code amendment for the location and operation of data centers and a rezoning and preliminary development plan for The District Downtown on its consent agenda, which included other ordinances. Read the full subscription story from
First-of-its-kind DraftKings sportsbook breaks ground at TPC Scottsdale
(Disclosure: Rose Law Group represents the PGA TOUR.) By Jessica Marksbury | Golf News SCOTTSDALE, Ariz. — Monday afternoon was unseasonably cloudy and gray in Scottsdale, Ariz., but the mood was certainly sunny just outside of the parking lot at TPC Champions, where representatives from DraftKings and the PGA Tour held a groundbreaking ceremony for a first-of-its-kind sportsbook, the DraftKings Sportsbook at
Pinal Partnership highlights three construction projects transforming Pinal County
By Madelaine Braggs | Rose Law Group Reporter The industrial sector is flocking to Pinal County. The historically rural area has exploded with construction in the last 20 years and could soon be a metropolitan hub comparable to living in Phoenix or any of its suburbs. According to the latest Pinal Partnership panel, moderated by Rose Law Group founder and