Rising UCC Foreclosures are “The Tip of the Iceberg”
Herrick real estate partner Neil Shapiro was quoted in The Real Deal in an article discussing distress in the real estate market and the unusual rise in Uniform Commercial Code foreclosures by mezzanine lenders.
The article states, "With one of the roughest years on record coming to a close, many have been waiting for their moment to jump on distressed properties. Now, mezz lenders — which provide junior debt on real estate projects — are increasingly initiating UCC foreclosures on some major developments in need of "rescue funding.""
Neil is quoted as saying, "Mezz lenders are much more aggressive because they are in a riskier position."