Commercial Foreclosure Toolkit (Select States)

by Practical Law Real Estate

A Toolkit providing a collection of resources to help counsel for borrowers and lenders navigate the commercial foreclosure process for deeds of trust and mortgages across select US jurisdictions. The foreclosure of commercial real property is a complex process, and failure to strictly adhere to state-specific statutory and common law requirements can expose lenders to claims of wrongful foreclosure. This Toolkit offers continuously maintained Practice Notes, Standard Documents, Checklists, and Flowcharts covering various methods, including judicial, nonjudicial, and quasi-judicial foreclosure. The resources provide guidance on all stages of the process, from initial borrower default to post-sale activities and deficiency judgments. This Toolkit also includes resources providing guidance on essential alternatives to foreclosure, such as deeds in lieu of foreclosure, loan modifications, and forbearance agreements, to assist counsel in managing distressed commercial real estate loans.