More and more real estate mezzanine loans go into default every day. It is inevitable that some mezzanine lenders, after considering possible restructuring options, conclude that foreclosure presents the only viable solution. Numerous articles have been written recently on the mechanics of foreclosing mezzanine loans under Article 9 of the Uniform Commercial Code, but little practical advice has come back from the front lines as borrowers and lenders vie for control of complex real estate assets. This article focuses on the real world strategic and tactical issues a mezzanine lender may encounter when conducting a mezzanine loan foreclosure involving a multi-faceted real estate asset.

View full memo, The Commercially Reasonable Real Estate Mezzanine Loan Foreclosure – Lessons from the Front Lines