A Look at the Friendly Foreclosure Option

Regina Stango Kelbon and Jilian R. Zvolensky

Regina Stango Kelbon Jillian R. ZvolenskyIn a recent paper presented in connection with the Spring 2015 meeting of the American Bar Association Business Law Section, we discuss the friendly foreclosure option under Article 9 of the Uniform Commercial Code. An Article 9 sale can maximize the secured lender’s recovery without the cost and delay of a judicial foreclosure sale or a sale under Section 363 of the Bankruptcy Code. The Article 9 sale can also avoid certain hurdles presented by a direct sale between the debtor and a buyer. In A Look at the Friendly Foreclosure Option we explain the mechanics of an Article 9 sale and highlight its advantages and disadvantages.

Click here to read the full article.