By Michael S. Perse
As the economy rebounds, some of my clients who hold judgments from earlier litigation are exploring the possibility of enforcing judgment liens against the debtors’ property, particularly South Florida real estate, which is beginning to climb in value.
First, it is important to ensure that your judgment is properly recorded and that you obtain a judgment lien in order to secure priority over other potential creditors. Additionally, while a judgment lien in Florida is good for twenty years, that judgment lien must periodically be re-recorded in order to remain valid and in order to maintain your priority over other judgment creditors.
Photo via Curbed Miami
As Property Values Rise, What Else Have we Seen?
By Todd A. Levine
Two weeks ago, my partner Alan blogged about some of the twists and turns he has seen in litigation as a result of rising property values in South Florida.
I too have seen some interesting tactics in my cases now that the properties in dispute are sky-rocketing in value.
For example, I have represented investors in real estate ventures and when the land values went south and the deals to buy the property did not close, my clients found themselves in litigation to recover their investments, which were not used to acquire the real estate as intended. Today, because the same properties are now worth significantly more money, my clients are either getting repaid or renegotiating their investment terms to be compensated for the rising real estate values. The same litigation that started during the 2009 recession is now taking an entirely different turn.
Another trend I have seen is local banks declaring non-monetary defaults for failing to provide financial statements or maintain certain debt ratios. These types of defaults used to occur all the time with banks generally looking the other way, particularly when the borrower was making timely payments on the loan. However, in the instances I have seen, banks are realizing that they have a valuable commercial asset on their hands, while simultaneously looking to upgrade their loan portfolios and minimize perceived risks. Oftentimes, borrowers feel pressure to settle with the banks and either refinance the property with another lender or pay off the loan in order to avoid foreclosure for a non-monetary default. As a result, I encourage my clients to ensure strict compliance with non-monetary loan requirements. Merely paying your monthly mortgage payments is not always enough to satisfy the banks any more and it is important to be prepared.
Photo via Haute Living
Property values rising – what we have seen
By Alan J Kluger
Over the last few weeks, the Miami Herald and the DBR have been writing about rising real estate values. At KKSKL, we have been involved in numerous disputes arising out of failed development projects. When the lawsuits started in 2009 and 2010, property values were in the toilet and people were looking to get out quickly and minimize their exposure. Well nothing moves that quickly in Miami, so here we are in 2012 and the litigation is still going but the tone has changed.