In Colorado, a substantial portion of banking and lending activity has a connection to real property. Lending transactions are often secured by real property assets. Loans in Colorado are very often made for the purpose of developing or improving real property. With real property, water and water right issues are frequently implicated as well. As a full service / multi-disciplinary lawfirm, Karp Neu Hanlon is uniquely qualified to help banks and private lenders navigate the waters of lending transactions.
Real Estate Finance
Karp Neu Hanlon works with lenders in structuring real estate finance deals. Attention to detail on the front end of a lending transaction can often prevent frustration and reduce cost if a borrower fails to perform. Our firm represents banks and private lenders who offer purchase money, development, refinancing, and other types of real estate secured loans. Legal representation includes: (a) evaluating the legal status of real property, land use entitlements and water rights related to a lending project, (b) drafting Colorado-specific lending documents, and (c) perfecting security interests in real and personal property, including tricky forms of collateral such as water rights and growing crops.
In today’s economy, understanding the remedy of foreclosure is essential. Our attorneys have dealt with complex foreclosure scenarios including multi-county foreclosures, foreclosures where the same property secures several loans, foreclosing water rights, judicial foreclosures, legal challenges to the right to foreclose, and the appointment of receivers to maintain a property’s value. Karp Neu Hanlon maintains a working relationship with public trustees on the Western Slope so that foreclosures can be accomplished quickly and efficiently for our clients.
When a loan becomes non-performing, sometimes it is in the lender’s interest to work with the borrower to refinance the loan. Karp Neu Hanlon has worked with lenders in evaluating the terms of and preparing the documentation to implement a work out. A loan work out requires more than reviewing an appraisal. Savvy lenders want to ensure that the legal status of real property and other forms of security has not changed since the loan was issued. Further, a work out provides an opportunity to correct any omissions or infirmities in lending and security documents.
Unfortunately, lenders are increasingly required to resort to the collection remedies provided for in loan documents and under Colorado law in order to recover monies received by borrowers. Karp Neu Hanlon is experienced with using the courts to timely and efficiently implement a creditor’s remedies. This includes litigation to collect on a promissory note or guaranty, having a receiver appointed to protect collateral, obtaining judgments of the court and finally exercising collection remedies such as garnishment and levy.