Lender vs. Borrower: With UCC Foreclosures on the Rise, Who’s Coming Out on Top?
Neil Shapiro was quoted in Commercial Observer, discussing the potential trend in UCC foreclosures. Following a court’s recent ruling that a lender with both a UCC pledge and a real property mortgage can determine which instrument it wanted to foreclose through, numerous properties have been admitted into foreclosure. With Shapiro’s representation of both lenders and borrowers, he stated that aside from recent examples, “I don’t believe we’re seeing a significant uptick in UCC foreclosures right now. I, along with several of my colleagues, am working on several distressed mezzanine loans but very few are in the foreclosure process right now.”