Mortgage Funds & Hedge Funds

Mortgage funds and hedge funds are crucial in moving capital to where it can do the most good, but despite extensive diligence, some investments are bound to fail. When too many investments are slow to pay off or fail, the fund itself may need to be reorganized. We have a solid track record assisting mortgage funds and hedge funds in reforming or liquidating distressed assets.

In one example, we represented a mortgage fund with a portfolio of liens against office buildings, development property and other assets throughout California as well as real property owned after foreclosure (real estate owned or "REO"). We assisted the fund in maximizing the value of its distressed assets, including by negotiating forbearance agreements with senior lenders, liquidating REO and other necessary steps.

In another example, we represented certain investors in bringing a fraudulent mortgage fund into an involuntary bankruptcy case, as part of which the investors' legal fees were later reimbursed by the fund. Thereafter, we represented the official committee of unsecured creditors, on whose behalf we worked to obtain the appointment of an independent trustee to liquidate assets and make distributions to creditors. We assisted the trustee in marketing and selling a variety of assets throughout the united states, including loan portfolios and REO, often amid complex circumstances such as rights of first refusal, condemnation proceedings, pending judicial foreclosures and litigation.

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