Real Estate Workouts

Overview

Volatility in the real estate market creates numerous challenges for borrowers and lenders confronted with distressed real estate projects. From complex workouts, foreclosures and restructurings, to project repositioning and high-stakes litigation, Dykema is well positioned to help clients maintain value and maximize recovery—while minimizing risk and expense—in troubled projects throughout the country.  

Fueled by an efficient, results-oriented and appropriately aggressive approach, our team has been an integral part of successfully concluded matters involving the full spectrum of real estate assets. This includes commercial, retail, office and multi-family; complete or partially complete residential developments; and industrial, specialty and mixed-use properties. Our solutions are informed by creative, yet pragmatic strategies that merge specific client goals and objectives with our broad and deep experience and legal knowledge. Importantly, our deep bench of highly skilled litigators are admitted in a wide array of courts across the country. This gives us the ability to vigorously pursue litigation on our clients’ behalf for all real estate financing related issues, including lien validity and priority disputes, construction and construction lien disputes, receiverships, and foreclosure and guaranty and deficiency claims.

Drawing from a diverse yet fully complementary team, our lawyers represent regulated and unregulated lenders of every stripe, and publicly and privately held borrowers, in all phases of the real estate workout, restructuring and enforcement process. We regularly handle forbearance agreements, loan modifications and restructurings, deed-in-lieu of foreclosure transactions, distressed note sales, receiverships and receiver’s sales, mortgage foreclosures, assignment of rents enforcement, and guaranty and deficiency claims. Our representation extends to construction completion issues fraud investigations, defending lender liability claims, and sales of REO property, and we also guide rated special servicers of commercial mortgage backed securities (CMBS) portfolios in the resolution of defaulted and delinquent loans.

Experience Matters

Our real estate workouts team has:

  • Developed a detailed procedure for residential mortgage loan servicer to deal with previously closed and pending REO sale transactions and pending foreclosure proceedings in response to a Michigan appellate opinion that, in a case of first impression, invalidated non-judicial foreclosure proceedings conducted in the name of MERS. The matter required, among other activities, detailed conversations with title insurance underwriters and their state legal counsel.
  • Represented a bank in the workout and restructuring of a $50 million dollar credit facility to multiple borrowers collateralized by interests in over 20 properties in several states. The matter also included the restructuring of a multimillion dollar warehouse line of credit.
  • Represented a capital‐providing member of an LLC formed to purchase distressed commercial office building held by foreclosing bank as REO, and negotiated the operating agreement and related venture arrangements on that member’s behalf.
  • Helped a mortgage lender avoid a significant loss on a multimillion-dollar property that was subject to civil forfeiture to the federal government.
  • Handled documentation, workout, restructuring and enforcement of multiple real estate and corporate credit facilities, including Letter of Credit backed tax exempt and taxable debt offerings for a major retail bank.

Speaking Engagements