Builders and Developers
Residential and commercial real estate have been some of the hardest hit areas of our economy in the last three to four years. Builders have had difficulty obtaining loan extensions or modifications to have more time for sales to occur and financing for new construction seems like a myth from the past. Lenders have been subject to increased regulatory scrutiny and enforcement in the form of consent orders. To cap it all off, property values have declined while lenders have been seeking greater equity cushions. What used to be a strong market for 90% LTV loans has deteriorated into situations where banks are seeking a 60-80% LTV ratio and the property has declined in value by 20 or 30%. The perfect storm.
DelCotto Law Group has worked with many residential and commercial builders and developers through this financial distress. We can help you negotiate on issues ranging from mechanics liens to short sales and deeds in lieu of foreclosure, to loan modifications which will improve the chances of commercial developments with struggling tenants to service their outstanding debt. We have negotiated terms for assignments of rent and even receivers when a lender felt such a remedy was appropriate and the client agreed. We have also used the chapter 11 process to allow developers the opportunity to liquidate underlying collateral at fair market value rather than succumbing to foreclosure sale prices and dealing with substantial deficiency balances. We will assess the dealings between you and your lender to determine if potential defenses or lender liability claims may factor into the ultimate resolution. In short, we’ve been around the block and can assist you both in and outside of the court system to deal with the very tight economic market in this industry. Give us a call at (859) 231-5800 and let us tell you how we can help solve your situation.
