Residential and commercial real estate values plummeted in the Great Recession. Lending for “spec” homes disappeared, and builders had difficulty getting loan extensions or modifications to allow adequate time to market and sell existing properties. Commercial tenants go out of business and can’t be easily replaced. Lenders have seen increased regulatory scrutiny and enforcement in the form of consent orders. As property values have declined, lenders have been requiring larger equity cushions.

DelCotto Law Group has and continues to work with a variety of residential and commercial builders and developers through this financial distress. We can help you negotiate issues ranging from mechanics liens to short sales and deeds in lieu of foreclosure, to loan modifications which allow commercial developments with fewer 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 experience with using the Chapter 11 process to allow developers 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 identify potential defenses or lender liability claims that factor into the ultimate resolution. In short, we’ve been around the block and can help you to deal with ongoing financial distress both in and outside of the court system.