WHY A PRE-FORECLOSURE ANALYSIS?
Real estate assets abandoned by developers are often found in a state of disrepair. The time lapse from the developer failing to maintain the property and the lender foreclosing results in further deterioration of the site causing damage to improvements, environmental contamination and accruing fines. Often the lender must cause repairs and compliance to take place after the foreclosure process has been completed. In some cases the lender must pay fines associated with the developer’s failure to comply with environmental and code ordinances. Unfortunately these issues are often discovered late in the process and the lender is forced to react to pressure from enforcement agencies.
Conducting a pre-foreclosure analysis will enable the lender to make informed decisions on how to proceed with foreclosure and respond to remediation needs by taking the surprise out of distressed asset ownership. A pre-foreclosure analysis will provide a detailed scope of issues and related costs. An action plan of remediation can be developed so that liabilities can be reduced and the lender can maintain focus on the value.
Cold River Partners provide pre-foreclosure analysis to lenders as well as the expertise to repair the property. Cold River Partners maintain proper certifications and relationships through various aspects of site development resulting in a thorough analysis of each property.
PRE-FORCLOSURE ANALYSIS WHAT IS COVERED IN A PRE-FORECLOSURE ANALYSIS?
- A summary of site conditions detailing the status of development activities, liabilities related to environmental deficiencies and safety concerns.
- Corrective action recommendations to achieve compliance and reduce liabilities.
- A compliance budget to implement the recommendations.
- Construction analysis and cost to complete.
- Property management and development completion.
- A photo log depicting current site conditions.