Alternatives to foreclosure, such as a sale during a receivership, are one option that banks, creditors and lenders may pursue in order to avoid the associated costs, disposition delays and potential devaluation of an asset. In particular, non-performing lodging loans and hotels in default may be a prime choice by financial institutions for these reasons.…
In the recent October 2010 Lender News published by Atlas Hospitality, the delinquency of Commercial Mortgage Backed Securities (CMBS) loans rose again in August. Hotels are hurt the worst with the highest delinquency at 15.5%. However, it has not triggered any increased use of a court receiver and hotel receivership as an alternative remedy to…
In Part 1 of this blog topic, I talked briefly about the the cost of hotel receivership services related to a rents and profits action and a court appointed hotel receiver and interim hotel management. Where there is a judgement to collect, such as an outstanding balance owed on sales taxes or a defaulted second…
Distressed hotels will be in a good position to see valuations continue rising based on demand and expense projections. This is despite the potential for more foreclosures in 2012 with loans coming due from loans refinanced in 2005 and 2006. The added supply of defaulted hotel loans does not suggest that there will be “fire…
The need for hotel receivership services prior to or in lieu of foreclosure does not appear to be on the minds and actions supported by lenders surveyed about their non-performing lodging loans and hotels currently in default. In fact, over 70% of these distressed hotels are in some type of workout. Here is an excerpt…
There are two articles published in the California Receivers Forum’s Summer 2010 issue of Receivership News that address conflicts and ethical and liability issues of court appointed receivers and those seeking to appoint them, such as lenders and special servicers. A copy of both articles is available through the link below. Neon Hotel SignThese issues…
Court appointed receivers, lenders and lawyers will gather to hear about what to expect in commercial real estate this year for the office, industrial, hotel and agriculture sectors on February 29, 2012. The event is a joint presentation by the Bay Area and Sacramento Chapters of the California Receivers Forum and will be held from…
Are you a bank or lender looking for ideas and information on foreclosure alternatives for your workout and special assets department? Mark your calendar for this Special Assets Management Association (SAMA) event on December 8, 2011 in San Francisco to learn more… Attorney Richard Rogan, a Partner with Jeffer, Mangels, Butler & Mitchell LLP, and…
There has been a consensus among many of us that the use of a court appointed hotel receiver would rise significantly given the anticipated tsunami of defaults and foreclosures in the commercial real estate sector. However, this thinking started almost two years ago by our estimates and we have yet to see the proportion of…