We may be facing a changing real estate environment regarding the last cycle of real estate acquisitions and debt financings. The result may be responsible investors whose project assumptions have not been borne out or whose initial debt structure had a time bomb implanted which is about to go off.
In the context of a foreclosure proceeding, an investor client not only risks losing the assets in question relating to the loan documents, but there is also an additional consideration that such "forgiveness of debt" is, in fact, a taxable event; and therefore a capital gain liability may be incurred as well.
BRC Advisors, Net Lease Group suggests that their may be additional deferral strategies available. Please contact your counsel and a BRC Advisor to review your options.