Yes, Receivers Can Get Title Insurance for Real Estate Sales

Yes, experienced receivers can reliably get conventional title insurance for real estate sales – both for bulk property sales and ‘retail’ condo and single family properties.  I’m actively selling real property as receiver with clean title insurance policies issued by major title insurance companies.  And, moreover, the title insurnance is free and clear of subordinate liens and claims, pursuant to orders issued by the Court.  However, I’ve been asked this question over the past few weeks by a number of lenders and lawyers, who are apparently reacting to a new, somewhat more conservative policy by Chicago Title.  I understand that Chicago Title recently decided tha they would only issue title insurance for receivership real estate sales by experienced receivers with whom they had a high degree of confidence.  I am pleased to report that I am one of those receivers, and we are actively closing real property sales with title insurance issued by Chicago Title.  If you want to know more, feel free to call me at my office at 310-230-3400, and I’ll be happy to talk with you about it.

2010 – Where’s The Deals? Where’s The Work?

We’re over two years into the Great Recession, and commercial real estate is essentially still paralyzed in nearly every respect.  What’s going on?

All We Have To Fear Is Wishful Thinking

Home builders and real estate investors seem to have a bad case of premature enthusiasm, sparked by the hope that everything is better now that we’ve avoided a global financial melt down.  Many economists and Wall Street analysts now believe we’re likely to see a significant downturn again later this year, and that the economy, real estate and banking all have a long, hard slog ahead. Why?  Well read on….

Selling Free and Clear of Mechanics Liens Thru Receivership: The Basics

An experienced receiver working closely with a sophisticated title insurance company can usually obtain free and clear title for the sales of new condo and tract tract home subdivisions on a retail basis. Here’s how….

2009: The Year Lenders “Recapitalize to Survive”

If 2008 was the Year of Denial, 2009 will be the Year of Recapitalization.  How much recapitalization? Investment bank Keefe, Bruyette & Woods projects that United States Banks might need as much as an additional $1 trillion in capital, according to the April 24, 2009 edition of the New York Times.

Housing Prices, BB’s and the Bottom of a Bucket

How long will it take before housing prices go up again? In reply to that question, I typically respond, “It will probably take a while longer than most people think and will look a lot like the bottom of a bucket.” When I’m asked why, I’ll usually ask them a question in return: “How long would it take to pick up two million BBs off the beach?” Whomever I’m speaking with usually gives me a puzzled and slightly annoyed look and says, “What’s that got to do with the bottom of a bucket, or, more importantly, when the real estate market will hit bottom or what the bottom will look like? And, for that matter, what’s the bottom of a bucket got to do with anything, anyway?”  Its been the best way I can think of to explain my view of the housing market.

CMBS Tranche Wars: The Next Wave of Zombie Real Estate

Remember how the residential real estate markets froze-up beginning in late 2007?  Well, the same thing is now happening in commercial real estate.  Read on….

What’s A Receiver? Why You Should Know….

What is a receiver? A receiver is an agent of the state or federal court who typically takes possession and control of real estate or a business as a neutral third party pursuant to a court order.  A receiver is frequently appointed at the request of a lender whose loan has gone into default in order to protect the lenders collateral.

Why should you know what a receiver is?  Lenders are increasingly looking to receivers to take control of, complete and/or sell the commercial property securing their non-performing loans. This is particularly the case with new condominium and tract housing developments (especially those that have homeowners associations), since a receiver can effectively insulate lenders from the onerous long term construction defects liability and related consumer protection obligations that come with this type of real estate.

Receivers Can Sell Real Estate Free and Clear of Mechanics Liens

Yes, receivers can sell real estate free and clear of mechanics liens.

This is not well known though – not even by title companies, highly experienced bank attorneys or many of the most experienced receivers.  Not because these folks aren’t knowledgeable and sophisticated, but rather simply because there hasn’t been much call for selling real estate by receivers, so the area is full of myth and legend and misinformation.

Receivers May Reduce a Lenders Tax Liability on the Sale of Subdivisions

Marc Brooks called me the other day and announced, ”You know, a lender who forecloses on a new subdivision development that was collateral for a non-performing loan may have to pay ordinary income taxes on all of the sales proceeds as a real estate ‘dealer’. On the other hand, when a borrower or a court appointed receiver sells out the subdivision and pays down the loan, the lender gets to remain a lender.”