Publications

Defaulted/Distressed Loans

35 Articles and Other Items Found

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A Great Technique To Escape Liabilities [2022]mail

According to recent bankruptcy case law, the "Texas Two-Step" technique might be a brilliant way for a law firm or other business to escape a burdensome lease or other liability.
Maybe We Don't Have To Worry About Clogging The Equity Of Redemption [2022]mail

Commercial real estate finance lawyers often worry about the ancient doctrine that prohibits "clogging the equity of redemption." Should a dual collateral structure still create an issue? Case law might finally be catching up with modern deal structures.
Secured Lenders And Their Counsel Can't Overlook Minor Details [2022]mail

UCC-1 filings are easy to do right and a disaster if done wrong or not at all. A recent New York case shows how bad it can be.
Can a Landlord's Bankruptcy Destroy a Lease? A Third Look at the Qualitech Case [2021]mail

The 2003 Qualitech decision caused alarm among leasehold mortgagees. Was the fear justified? Not at first, but then mission creep took hold.
Rating Agencies Should Rate Foreclosure Timelines [2021]mail

When rating agencies review mortgage loans for CMBS, wouldn't it make sense to consider how long a foreclosure would take in the state where a property is located? Isn't a state's foreclosure timeline at least as important as many other data points the agencies check?
Streamlining The Real Estate Purchase And Sale Process [2021]mail

Buyers and sellers can speed up the commercial real estate purchase and sale process if they follow some practical recommendations.
Real Estate, Interrupted: Joshua Stein talks about how commercial real estate can survive the Covid-19 pandemic [2020]mail

How are commercial landlords, tenants, lenders, and borrowers dealing with Covid-19? Super Lawyers magazine published a long interview with Joshua Stein.
Fast Foreclosures For Mezzanine Loans - Borrower Beware [2020]mail

Mezzanine loan borrowers should remember that the tradeoff for receiving additional financing is a relatively swift, easy foreclosure by the lender.
Tricky Loan Clauses Can Create Disaster For A Property Owner That Waives Or Defers Rent [2020]mail

A property owner might want to accommodate a tenant's financial distress during hard times, such as a once-in-a-century pandemic. But the owner should first check its loan documents.
Does a Creative Bankruptcy Scheme Imperil Commercial Real Estate Lending? [2019]mail

When an investor helps a commercial real estate developer/borrower make clever use of the bankruptcy code to delay foreclosure, can the lender sue the investor for the resulting delay?
Who Cares About Clogging? [2018]mail

Real estate finance lawyers continue to worry about the ancient doctrine against "clogging the equity of redemption," which serves as an example of what happens when case law and statutory law don't keep up with the times.
How to Fight Blight Caused by Residential Foreclosure [2016]mail

There's a way to fight blight caused by residential foreclosure in New York, but it requires a rethinking of the foreclosure process.
Commercial Real Estate Loans: Trends in Carveout Guaranties [2015]mail

Nonrecourse (carveout) guaranties have evolved and even mutated over time. Lenders, borrowers and guarantors need to know how they have changed, and should be aware of some surprising court decisions along the way.
Foreclosure Foiled by a Paper Clip [2015]mail

A recent New York foreclosure case illustrates the need for reforming antiquated negotiable instruments laws so complex that even an appellate court seems to have misunderstood them.
This Has Happened Before, and It Will Happen Again [2015]mail

Lending and construction are back, but will lenders and developers make the same mistakes they made before the last meltdown? This article discusses what went wrong before the 2008 fiscal crisis, and why it can happen all over again.
What Happens When a Crowdfunded Deal Goes Bad? [2015]mail

An investor in a crowdfunded deal should understand what happens if things go wrong. This article examines what the options are for sponsor and investors, including where the money might come from to save the deal.
Faster Foreclosures? [2014]mail

New York's new "Accelerated Adjudication" court rule could make commercial litigation, including commercial foreclosure, a lot less arduous. One core provision is anticipated to speed up the process.
Much Ado About Mezzanine Lending [2014]mail

Mezzanine lending is an essential component of modern deal structures, but guarantors can't be too careful. This article explains why the nonrecourse carveout guaranty is a dangerous tool that should be handled with great care.
Not So Fast! (The Mezzanine Loan Surprise) [2012]mail

A mezzanine borrower in default might not realize how quickly the lender can take the collateral for its loan. Borrowers need to know what to expect after default, and how to avoid "strict foreclosure."
Restructure Ownership Without a Foreclosure [2012]mail

A development overburdened with debt doesn't have to go into foreclosure and litigation. It's possible for developers, investors and lenders to work out a better solution.
Revisiting the 24 Defenses of the Guarantor -- 24 Years Later [2012]mail

Careful drafting of a guaranty can best protect a lender against a guarantor's defenses. The co-authors respond to each of the 24 defenses identified 24 years earlier with updated drafting strategies and additional suggestions for negotiating and administering guaranties.
Special Servicing - Article Quotes Joshua Stein [2011] mail

For an article on special servicing and the standards that apply to loan modifications and extensions, the SNL Financial newsletter quoted Joshua Stein. To read the SNL article, click anywhere on this paragraph.
What to Expect When a Receiver Takes Over A Troubled Property [2011]mail

Appointment of a receiver represents a crucial step in the foreclosure process. What happens when a receiver enters the picture? How should a borrower react? And what should borrowers and lenders expect? Joshua Stein and a co-author explain what a receiver does, and why.
Bloomberg News Quotes Joshua Stein on Stuyvesant Town Litigation [2010]mail

An intercreditor agreement became the main event at Stuyvesant Town in September 2010, after a Pershing/Winthrop joint venture bought a tranche of mezzanine debt and tried to foreclose. A trial court decided the joint venture could not proceed without paying off the entire first mortgage debt, about $3.6 billion. Bloomberg News called Joshua Stein for his thoughts on what might happen next.
Looking for Trouble and Finding It - Buying a Troubled Commercial Real Estate Loan [2010]mail

How to review a portfolio of troubled commercial real estate loans, and what to look for.
Lender's Triage For A Troubled Commercial Real Estate Loan [2009]mail

When a lender sees trouble ahead, what should the lender do first? This article offers some suggestions, including comments on the perils of email.
Model Amendment Of Loan Agreement (For Workout) [2008]mail

Written from the lender's point of view, this sample amendment to a loan agreement provides common workout terms.
Model Deed In Lieu Of Foreclosure Agreement [2008]mail

When a borrower intends to "give the keys" to the lender, both parties will often benefit by entering into an agreement about the transaction. Here is a sample deed in lieu agreement, with some related forms attached as exhibits.
Defaults; Acceleration; Consequences [2007]mail

When a loan goes into default, the lender's first steps can help determine the ultimate outcome and how quickly the property can get there. This chapter from Joshua Stein's book on New York Commercial Mortgage Transactions introduces these issues, with suggestions for lenders in New York and elsewhere.
Foreclosure and Other Remedies [2007]mail

An introduction to the law of mortgage foreclosures in New York, with warnings about mistakes that lenders and their counsel can easily make. Reprinted from Joshua Stein's book on New York Commercial Mortgage Transactions.
Case Study Of A Troubled Hotel Loan: The Heavenly Gardens Hotel [2006]mail

The story of the hypothetical "Heavenly Gardens" hotel sounds far-fetched. Surely no hotel could have as many problems as this one. Or could it?
Distressed Hotel Loans - Outline of Selected Issues [2006]mail

A summary of issues for a lender or its counsel to consider when a hotel loan is in distress or in default. This outline ends just before the foreclosure begins.
Loans in Distress and Default [2004]mail

This chapter (from Joshua Stein's book on structuring and closing commercial mortgage loans) explores a lender's options and strategies in dealing with troubled loans.
Will Mezz Get Messy? [2004]mail

In 2004, Joshua Stein was interviewed in the Slatin Report about possible issues with mezzanine loans going into default.
Acquisition Loans Pose Added Risks For Lenders [1997]mail

Lenders that finance the acquisition of mortgages face risks that go beyond those of typical mortgage lenders. With careful drafting, lenders can reduce risks arising from "mortgages on mortgages."

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Joshua Stein PLLC
Please Note Our New Address:

110 West 57th Street, 4th Floor
New York, NY 10019 (212) 688-3300

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