Loan Servicer - Complicated Foreclosure
Representation of a loan servicer for a holder of a defaulted mortgage loan, in pursuing foreclosure of a defaulted mortgage loan. We negotiated a sale of the loan contingent on foreclosure, but on the eve of the sale, the borrower filed for bankruptcy. We moved for stay relief and the borrower objected and sought to cure the default, which would have imposed a 40-year maturity. We negotiated a discounted payoff with a waiver of future borrower cure rights for a greater price than would have been received under the foreclosure contingent loan sale and persuaded the loan buyer to terminate the agreement.