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Commercial Foreclosure Toolkit (Select States)
Practical Law Toolkit w-019-8139 (Approx. 39 pages)
Commercial Foreclosure Toolkit (Select States)
by Practical Law Real Estate
| Maintained • ExpandArizona, California, Colorado...Connecticut, District of Columbia, Florida, Georgia, Illinois, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New York, Ohio, Oregon, Pennsylvania, Texas, USA (National/Federal), Virginia, Washington |
Resources to help counsel for borrowers and lenders in a variety of jurisdictions understand all stages of the commercial foreclosure process for deeds of trust and mortgages. This Toolkit contains guidance documents and standard forms for use at all stages of the commercial foreclosure process, including foreclosure alternatives (for example, deeds-in-lieu of foreclosure, loan modifications, and forbearance).
The foreclosure of a deed of trust or mortgage, whether secured by residential or commercial real property, often is a complex process. A lender's failure to strictly follow the applicable constitutional, statutory, contractual, or common law requirements for a particular type of foreclosure may lead to a borrower's action for wrongful foreclosure or rescission.
There are many forms of foreclosure across the US. The most common forms of real property foreclosures include:
- Nonjudicial. Foreclosure is often authorized under a mortgage, deed of trust, or other contract lien with a power of sale and is conducted at a public auction without judicial assistance. Nonjudicial foreclosure is the most common foreclosure method in many jurisdictions because it is significantly cheaper and faster than judicial foreclosure.
- Quasi-judicial. In certain jurisdictions, a lender must obtain a court order approving foreclosure before conducting a nonjudicial foreclosure.
- Judicial. Judicial foreclosure occurs when a court orders the real property sold after a judgment in a lawsuit. This method of foreclosure is typically the most expensive and time-consuming method of foreclosure.
This Toolkit contains continuously maintained Practice Notes, Standard Documents, Checklists, Flowcharts, Toolkits, Articles, State Q&As, and Videos to help counsel for borrowers and lenders in a variety of jurisdictions manage the commercial foreclosure process from the initial stages through the foreclosure sale and post-sale activities, including deficiency judgments.
This Toolkit also contains resources to help counsel for borrowers and lenders with alternatives to foreclosure, including deeds-in-lieu of foreclosure, loan modifications, and forbearance.
For a collection of resources to assist counsel with the residential foreclosure process, see Residential Foreclosure Toolkit (Select States).
All Other Jurisdictions
The Practical Law Real Estate Finance: State Q&A Tool enables subscribers to search and compare Practical Law's Real Estate Finance State Q&A resources. Questions and answers cover state laws relating to real estate finance, including foreclosure procedures, redemption rights, and any significant costs of or impediments to foreclosing a lien on real property. Simply select the questions and the jurisdictions that you are interested in and click the "Submit" button.