Commercial Mortgage-Backed Securities Special Servicer Group

Dykema’s cross-departmental team of attorneys collaborate to provide its CMBS special servicer clients creative, aggressive, and cost-effective solutions to assist with enforcing their rights. Our team is trained in the areas of workout, litigation, foreclosure, real estate, tax, bankruptcy, front-end loan documentation and leasing. Clients understand our deep commitment and dedication to providing the highest quality of work, and appreciate our responsiveness and laser focus on obtaining the most efficient and effective results.

Dykema’s team seamlessly handles everything from pre-default issues and pre-negotiation letters, through litigation, bankruptcy, and the ultimate disposition of the collateral. We are experienced in crafting receivership orders which give the receiver the option to market and sell the property, if so desired, and if so approved by the court. We also understand the interplay between special servicers and master servicers under pooling and servicing agreements and non-transfer events, as well as how cash management and cash trap periods work pre- and post-default.

We pride ourselves in advising clients how to expedite what can be an exasperatingly slow foreclosure process. We have also cultivated creative techniques to maximize disposition proceeds.

Our attorneys have significant litigation experience in effectively pursuing guarantors and other obligors in full-recourse liability, carve-out liability and fraudulent transfer litigation in state and federal courts. Our team focuses on creative and efficient solutions to maximize recovery for the special servicer on behalf of the lender trust once a borrower or guarantor triggers personal liability, be it carve-out liability based on triggers such as rent conversion or fraud, or full-recourse liability based on triggers such as certain covenant breaches or unpermitted indebtedness or unpermitted transfers. Should the borrower or any guarantor file for bankruptcy, the same team will handle the bankruptcy matter, swiftly handling any and all preference, fraudulent transfer, Chapter 11 trustee motion practice, adversary proceedings, Section 363 sales, Plan confirmation matters, and non-dischargeability litigation in bankruptcy courts around the country.

We also assist our mortgagee clients in property-related disputes within and outside of the foreclosure context—including disputes between landlords and tenants, mechanics lien and construction matters (including priority disputes), association disputes, CAM/tax reimbursement disputes, easement and other land-use disputes involving shopping centers, land development, multifamily properties, and other sectors.

Importantly, our team of attorneys is also well-versed in drafting and negotiating all CMBS workout options, including forbearance agreements, deeds in lieu of foreclosure, assumption agreements, reinstatement agreements, agreements involving defeasance, discounted payoff agreements, and a host of other creative workout solutions. Dykema’s team takes a bespoke approach to each loan while using its significant institutional knowledge to efficiently work with the special servicer to achieve the best possible result for the noteholder at any point pre-litigation, during the course of litigation, post-judgment, or post-bankruptcy.