Why You Need Us and What We Will Do For You.
There are several reasons why it makes sense to hire an experienced loan workout specialist attorney firm such as the Birch Law Group when problems occur. Firstly, by virtue of our 29-year history as an active and well-respected player in the commercial mortgage finance industry, the Birch Law Group enjoys long-term relationships with both national and regional portfolio lenders as well as with most major CMBS servicing agents. As a result, our good name and relationships can help effect a positive outcome when we negotiate a loan workout.
Secondly, a loan default can understandably create a strain on even the strongest borrower / lender relationship, often causing an emotionally charged backdrop which can prevent a direct resolution between the parties. As experienced Chapter 11 Bankruptcy attorneys and lender liability litigators and our network of real estate professionals and accountants , the Birch Law group understands the micro and macro issues affecting the cash flow and value of all types of commercial properties. As former bankers, we can effectively and unemotionally articulate these issues in a language that lenders understand and appreciate.
Due to our extensive commercial mortgage financing experience and our real-time knowledge of the capital markets, we have the advantages of knowing the right time and the right lender to refinance your existing troubled loan. Under a default scenario, we may then decide to take the property to the debt marketplace to explore a refinance. After thoroughly surveying the debt market and determining that a refinance is not feasible, we will share our results with the existing lender to compel them to entertain loan workout discussions.
Our members have successfully restructured over $2 billion in distressed real estate debt on all property types.
The Great Unknown: CMBS Loan Modifications.
With the proliferation of securitized lending over the past decade, commercial real estate financing has evolved largely from a relationship business to a transactional business. CMBS lenders have placed greater emphasis on underwriting cash flow than to getting to know their borrower. Even if you have a relationship with the loan officer at your CMBS lender, that individual cannot help you when problems arise after closing
The unfortunate and unintended consequence of a CMBS securitized loan is that most borrowers today have no relationship with, let alone know the names of, those individuals empowered to administer loan workouts on behalf of the bondholders who hold their mortgage: the Special Servicers. We know that you can often feel like a stranger in a strange land when dealing with these servicing agents. Furthermore, most borrowers have little understanding as to the complicated fiduciary responsibilities that these servicers have with the multiple classes of bondholders that comprise a REMIC. More importantly, borrowers are not aware of the latitude that servicers have in terms of a restructure. It is understandable that borrowers are left feeling alienated, frustrated, and confused when negociating a loan modification with Special Servicers.
We have both the insight and experience to help you navigate through the maze of bureaucracy that typifies a loan modification with a Special Servicer.
Even in the unlikely event that a loan restructuring cannot be achieved; we will proactively expose your property to our vast sources of private and institutional joint venture equity investors, buyers and lenders. Altman Warwick will make every effort to help you avoid a foreclosure and to achieve the best possible sale, refinance or recapitalization for your property. See the Prevent Foreclosure section
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