COVID-19 has unexpectedly brought an anticipation of increased distress in real estate markets across the U.S., with particular expected impacts on retail, office , restaurant, and multi-family properties. Default rates have already increased significantly and are projected to continue to increase for the next couple of years. As a result, we anticipate that real estate devaluation will commence in the next few months and continue until the supply-demand equilibrium is re-established.
We are receiving numerous calls from creditors to discuss at what point it makes sense to move forward with the appointment of a Receiver when a debtor becomes unresponsive and the loan goes into default. Every situation is unique. However, we generally see the following advantages with the appointment of a Receiver early in the cycle where declining real estate values are occurring.
If you believe your circumstances may require the appointment of a Receiver and would like to discuss the nuances of your situation, please feel free to call us at 303-721-8755.
Cordes & Company is a leader in insolvency and workout advisory services across many industries, especially real estate. Roughly 75 percent of our 500+ receivership engagements during the past 35 years have involved various real estate property types.
Cordes & Company has offices in California, Colorado and Minnesota and we are able to work on projects throughout the United States with a focus on mid-west and western states.