“Pitfalls for Sellers and Purchasers of Defaulted CMBS Loans”

Stephen J. Shapiro, co-chair of the Financial Services Litigation Practice Group, authored the article “Pitfalls for Sellers and Purchasers of Defaulted CMBS Loans” published by Mortgage Servicing News on July 17, 2012. As commercial loans continue to default, the controlling classes of certificate holders in CMBS loans are likely to change with increasing frequency. These changes have the potential to bring with them shifts in the identity of the parties that have the authority to approve the sale of defaulted loans. As illustrated by a lawsuit that Schnader litigated to a successful conclusion for its client, these changes can lead to expensive disputes.