Deed in Lieu of Foreclosure
Subsequent to the commencement of foreclosure proceedings against the mortgaged property, we learned that an affiliate of the Mortgagor was involved in a state-court receivership proceeding. The receiver claimed the right to control the property even though the Mortgagor was not directly involved in the receivership. Tenants' needs were not being met. The property faced the prospect of significant deterioration. We negotiated a release from the receiver, put our client in control of tenant issues and, within five months of filing the foreclosure complaint, we secured a deed in lieu of foreclosure. We were able to stabilize the condition of the property by working collaboratively with the borrower and tenants.