Michael J. Willner
Partner
201-896-7244 mwillner@sh-law.com
Foreclosures and REO Transactions
Scarinci Hollenbeck provides comprehensive legal services to financial institutions, hedge funds, and other institutional investors regarding troubled loans and property foreclosure. Our attorneys also have significant experience handling the complex legal issues surrounding the acquisition and disposition of real estate owned (REO) property.
Key Contacts
Donald M. Pepe
Partner
732-568-8370 dpepe@sh-law.comForeclosures and REO Transactions
Overview
Loan Workouts, Restructuring, and Foreclosures
When a foreclosure is contested, it can quite easily turn into a court matter. In this situation, it is essential to have legal counsel with the knowledge and experience to navigate the foreclosure process successfully. Our attorneys are accustomed to dealing with complex and sophisticated business matters and have many years of experience handling the myriad of legal and financial issues surrounding foreclosures, including out-of-court workouts and state and federal court litigation over creditors’ and debtors’ rights.
Our foreclosure practitioners have experience working with various financial institutions, insurance companies, leasing and finance companies, and other entities interested in preserving and enforcing their rights as creditors. They routinely advise creditors regarding their rights and solutions to foreclosures, as well as in different types of recovery of real and personal property, secured transactions, and other areas of commercial law.
Partnering with members of our Bankruptcy, Financing, and Litigation groups, when necessary, our foreclosure practitioners are equipped to provide solutions to a wide range of legal concerns, including:
- Confessions of judgment and stipulated judgments
- Deeds-in-lieu of foreclosure
- Lender liability suits
- Lien priority in foreclosure
- Liquidation agreements
- Mortgagor, squatter, and tenant evictions
- Real estate foreclosure
- Real estate receiverships
- Voluntary surrender agreements
- Voluntary foreclosure agreements
- Work-outs, forbearance agreements, and loan modifications
REO & Eviction Representation
The acquisition and disposition of REO property often involve unique legal challenges. Scarinci Hollenbeck provides sophisticated real estate legal counsel to lenders, investors, and servicers concerning REO properties, and the legal issues which accompany these types of properties.
We analyze and assist clients in clearing titles for REO properties, which ensures smooth and efficient REO sale transactions. We also guide clients through the due diligence process, which is critical for such a transaction. Whether providing counsel during an acquisition or disposition, our REO attorneys have the knowledge and experience to assist clients through every phase of the transaction. Backed by a team of talented trial attorneys, our REO attorneys also routinely assist clients with REO litigation, including REO evictions.
FAQ about Foreclosures and REO Transactions
A real estate owned property (or REO property) is a property that is owned by a bank or other lender as a result of foreclosure or an alternative means of foreclosure.
Real estate investors and other property buyers should understand the risks and benefits of REO properties. One of the primary advantages of purchasing REO properties is that they may be sold at a discount depending on the condition and location. The disadvantage is that they are generally sold “as is” and have often fallen into disrepair. As a result, it is important to consider how any necessary renovations and repairs will impact your budget. Another potential issue is that REO properties may be occupied. While eviction may be possible, the process can be costly and time-consuming.
In most cases, filing for bankruptcy triggers the U.S. Bankruptcy Code’s automatic stay provisions. The automatic stay prevents a party from starting or continuing a foreclosure proceeding. However, it does not automatically dismiss the foreclosure proceeding. Once the bankruptcy case is resolved or the bankruptcy stay is vacated, the foreclosure proceeding will resume from the point at which the automatic stay took effect.
Most owners of REO properties list the properties on the local MLS, so contacting a Real Estate Broker in the geographic area of interest is the best way to locate and identify a REO property for sale.
No. The completion of a Foreclosure does not necessarily resolve and eliminate all title issues that may exist. An experienced real estate attorney and title company should be consulted to discuss the state of the title of a particular property.
No. Many REO properties are sold subject to existing occupants. Whether those occupants can ultimately be evicted is a topic that should be discussed with an experienced eviction attorney.
OUR commitment to excellence, combined with our mission to deliver outstanding client service, has earned our firm a solid reputation.
Scarinci Hollenbeck is a business law firm based in New Jersey, New York, and Washington, D.C servicing clients worldwide.
If you have a legal need that is not mentioned, please contact us to discuss how we may help you.
Contact us today to learn more about how we can assist you.
Practice Area Attorneys
Why Choose Us?
Scarinci Hollenbeck has significant experience working with debtors, financial institutions, investors, hedge funds, insurance companies, leasing and finance companies, and various other entities in various matters involving troubled loans and property foreclosures. We also serve as REO counsel for national real estate investors, loan servicing companies, and financial institutions.
Knowing that a strong litigation position often leads to a settlement of the dispute, our attorneys are experienced and practiced negotiators who make every effort to negotiate a favorable and carefully documented workout of creditor-debtor disputes. We have a strong record of success in selling large portfolios of foreclosed properties, negotiating REO property acquisitions, and facilitating workout/deed-in-lieu transactions.
Entities that the firm has represented include:
- Webster Bank, N.A
- Trust Company of New Jersey
- First Bank and Trust Company of Illinois
- Wells Fargo Bank, N.A., through its Wells Fargo
- Business Credit Operating Division Interchange Bank
- Capital Crossing, a division of Lehman Brothers Bank,
- FSB
- Casino Reinvestment Development Authority
- Private Capital Group, LLC
- Copperfield Investments, LLC
- Heritage Estates, LLC
- Selene Finance LP
- The Caneel Group
- First Citizens Bank
- 21stMortgage Corporation
- Truman Capital Advisors
- Toorak Capital Partners
- RESICAP
- Hudson Homes
- New Jersey Community Capital
