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Are You Ready for the Next Downturn? A Primer on Key Cases Affecting Commercial Real Estate Lenders in California

Real Estate

When will the next economic downturn arrive? Prognosticators give a wide variety of opinions on that question, with some predicting many months of continued prosperity and others predicting imminent doom. The one thing they all agree on is that a down cycle is coming, and it's coming relatively soon. 

When it arrives, the down market will bring with it higher rates of borrower delinquencies, defaults and bankruptcies. Lenders secured by California real estate will have to reacquaint themselves with loan enforcement tools they may have been able to set aside, happily, for a while.  

These alerts discuss some of the key cases decided in the last few years that will likely affect lenders' future loan enforcement efforts:

  • A Lender May Be Able to Both Foreclose on a Senior Lien and Seek a Deficiency on a Junior Lien
  • Ninth Circuit “Cramdown” Cases Affecting Real Estate Lenders
  • Appellate Court Narrows the Scope of the Sham Guaranty Defense
  • Reverse Veil Piercing May Be Used to Reach an LLC's Assets

Related Articles

  • Are You Ready for the Next Downturn
    California Mortgage Finance News
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Authors

Joshua A. del Castillo

Partner

Los AngelesT(213) 955-5591jdelcastillo@allenmatkins.com
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Michael R. Farrell

Partner

Los AngelesT(213) 955-5527mfarrell@allenmatkins.com
Email Michael R. Farrell
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Michael R. Farrell LinkedIn

RELATED SERVICES

  • Receiverships, Lenders & Special Creditor Remedies

  • Real Estate Disputes

  • Restructuring, Insolvency & Bankruptcy

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