Stuart M. Saft, a partner with Dewey & LeBoeuf, writes: Most of the large deals that collapsed in the last three years had a debt stack that included mezzanine loans, and, unlike the holders of the senior debt on the same property, the holder of the mezzanine debt either had to buy out the senior debt to protect its position or lose its entire investment. Nevertheless, mezzanine financing is an inventive solution to a financing quandary, that should continue to be an essential component of real estate finance.
Richard S. Fries, Todd B. Marcus and Brian A. Katz of Bingham McCutchen discuss the enforcement challenges that residential mortgage lenders face, including defaulting borrowers, a skeptical and activist judiciary, and regulators, offer some practical legal solutions for these issues.
