Lawyer Article
Loan Purchase Transactions: An Innovative Approach to Acquiring Real Estate Assets in a Downturn Market
April 3, 2008
Republished with permission of The Real Estate Finance Journal. This article is published in the Spring 2008 edition of the The Real Estate Finance Journal.
Abstract
As the ripple effect from the subprime meltdown continues to impact the nation's real estate market, undercapitalized projects that are midway through constrution or redevelopment will likely begin to fail and go into "loan workout" or, even worse, foreclosure mode. Mortgage lenders who find themselves holding the non-performing loans on these projects will increasingly be inclined to consider selling their loans frequently at a discount or occassionally at par (particularly where the underlying real estate is extremely desirable or valuable).
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