About 10 years ago, one of our veteran workout professional clients realized that many bankers on his staff did not know what a receiver does, why a bank might want to have a receiver appointed and how a receivership works. He asked me to come to their offices and explain the concept of receiverships. I put together this Receivership 101 presentation for that seminar, and since then, I have presented this seminar many times in private in-house seminars we do for our clients, for the California Receivers Forum and for other professional associations.
And now, history has repeated itself! Because the current downturn followed a long and deceptively strong real estate market, many of our clients are experienced and capable real estate lenders who have been asked to help deal with the flood of troubled commercial real estate loans. These veteran bankers know real estate finance backward and forward, but they are learning quickly that things often work differently on the “dark side” of the bank!
One question that comes up in most troubled real estate credits is whether a receiver should be appointed. Often, a receiver provides the best solution to addressing troubled assets, but not always. The JMBM Special Assets Team™ has handled countless problem real estate loans and in doing so, has helped workout professionals make the decision whether to seek the appointment of a receiver.
This is Dick Rogan, bank lawyer and author of www.SpecialAssetsLawyer.com, signing off for now. Join us again soon to check out what’s new in the World of Workouts.
Year after year, day after day, workout professionals in the know rely on JMBM’s Special Assets Team™ to handle problem commercial and real estate loans. Whatever problem loans you have, chances are, we’ve seen it. Give us a call.
Our Perspective. JMBM represents commercial banks, special servicers, private lenders, asset-based lenders, hard money lenders and factors. We help lender clients throughout the United States craft business and legal solutions to their commercial and real estate troubled loans. For more information, please contact Dick Rogan at RRogan@JMBM.com, or (415) 398-8080.
Richard A. Rogan is Chair of the JMBM Special Assets Team™. He also serves as the co-managing partner of JMBM’s San Francisco office and co-chair of its Bankruptcy Practice Group.
JMBM’s Special Assets Team™ has represented hundreds of lenders in California and throughout the United States. We regularly appear in bankruptcy courts, district courts and superior courts. We are proud to serve as trusted counsel and advisors who look for a business solution and try to help lenders find the best possible resolution for each troubled loan. Whether a loan is being newly documented, restructured or litigated, JMBM’s Special Assets Team™ has the skill, know-how and experience to solve your problem in a practical no-nonsense way.
NOTE TO CONSUMERS: As a matter of Firm policy, JMBM does not represent individual consumers who have disputes with their lenders. Many lenders have specialized consumer workout professionals who have the time to help consumer borrowers. There are many fine attorneys who specialize in representing consumers. Individuals with consumer lending problems should contact a lawyer or law firm who specializes in consumer insolvency and bankruptcy in their local area. When in doubt, we suggest you contact your local bar association’s Lawyer Referral Service. [For example, see Bar Association of SF or LA County Bar Association Lawyer Referral Services]
JMBM does not provide legal advice to consumers, and cannot respond to consumer inquiries.