Posted in: BARG Receivership Law Updates

California Non-Judicial Foreclosure Step by Step Process

CALIFORNIA NON-JUDICIAL FORECLOSURE STEP BY STEP PROCESS Introduction: California foreclosure laws are unique for a variety of reasons, the first being that a lender can conduct either a judicial or non-judicial foreclosure sale, however in practice, almost all lenders use the non-judicial foreclosure process. This article will explain the step by step process a lender must take to properly foreclose on a

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Posted in: BARG Receivership Law Updates

LIEN STRIPPING: WHY DOES IT OCCUR AND HOW DOES IT WORK?

Few people are familiar with the term lien stripping.  Therefore, an example of when lien stripping would be utilized can be illustrated through the following example of insufficient equity.  If in 2010, a set of parents drafted a will granting $1,000,000 to their four children upon their deaths, each child would be entitled to $250,000.  However, what if when the parents died

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Posted in: BARG Receivership Law Updates

USING RECEIVERSHIPS TO HELP LENDERS AVOID LIABILITY ON DISTRESSED ENVIRONMENTAL ASSETS

Secured lenders are hesitant to foreclose when environmental problems exist, based on concerns about CEQA, CERCLA, or other environmental issues, because they may be deemed an owner or operator.  However, lenders can avoid these concerns by seeking the appointment of a receiver for the distressed property.  California Civil Procedure (“CCP) §  2929.5 & 564(c) authorizes lenders to inspect property to assess the

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Posted in: BARG Receivership Law Updates

Federal Bankruptcy is Not an Option for State Legal Cannabis Business so What Should They Do When They are Failing Financially? Appoint a Receiver

At this time, thirty-three states have legalized marijuana. ( Esquire Link )  However, marijuana remains illegal federally.  21 U.S.C. §§ 801-890 (1970.)  As a result of marijuana’s status as a controlled substance federally, numerous bankruptcy courts have flatly banned state legal marijuana growers from seeking federal bankruptcy protection.  In re Rent-Rite Super Kegs W. Ltd. (Bankr.D.Colo. 2012) 484 B.R. 799, 809.  There was some hope that

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Posted in: BARG Receivership Law Updates

USING RECEIVERSHIPS TO REVITALIZE ABANDONED CONSTRUCTION PROJECTS

What happens when a construction project runs out of money and the half finished skyscraper, mall, or hotel sits vacant for years?  There are two things that can happen everyone can wait until the developer finds funds, which is unlikely. Or a more practical solution is that a developer or other party with a recorded interest can seek the appointment of a

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Posted in: BARG Receivership Law Updates

RECEIVERSHIP AS A REMEDY ADDRESS ECONOMICALLY DISTRESSED PROPERTIES

If a property is underwater and/or in a blighted condition with numerous lienholders that are hesitant to foreclose? The answer is often receivership. If a property is underwater, but some equity exists a receiver can be appointed to take control of the Property and eventually sell the Property pursuant to California Code of Civil Procedure “CCP” § 568.5. The receivership sale must

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