| More third-party investors are jumping on distressed loan opportunities but underestimate the legal and economic issues—it's much different than buying real estate directly, warn Jackie Weiss and David Dubrow, partners at our great sponsor Arent Fox. They'll be co-hosting a July 15 event on navigating distressed loan purchases with Buccino & Associates' Christopher Picone. A third-party buyer may not have access to that same due diligence the lender had when making the loan, representations, and warranties. There are also tax consequences to consider, especially in NY—there could be additional costs, like a transfer tax, involved. Investors need to realize remedy options, how long it will take to close, and the cost of foreclosure actions, as well as analyze guarantees and bankruptcy risks. Developing a coherent game plan is critical to determining whether to buy and how much to pay for a loan. To learn more, ping Lauren Allen, allen.lauren@arentfox.com or (212) 457-5461. |
Navigating the Landmines
Continue reading this story with a free account
Log in or register
Related Topics:
David Dubrow
, Jackie Weiss
)
)
)
)
)
)
)
)
)
)
)
)