To bring this case study full circle, Andrea Davis, in her IBJ blog North of 96th, reported earlier this week that: Hawthorns golf course sells to lender for $5.5M. I followed this Indiana commercial foreclosure case starting with my 6/10/14 post, IBJ.com: Hawthorns Golf & Country Club Bankruptcy/Foreclosure, and then my 10/24/14 post, IBJ.com: Hawthorns Golf Club Foreclosure Update.
The outcome of the Hawthorns matter, which centered around a splendid golf club on the northeast side of Indy, was that the lender/mortgagee (actually, a private investor group) acquired title to the Hawthorns free and clear of all liens. The case is illustrative of how a real estate developer (in this instance, a golf course-based business) can become the owner of a project by first purchasing a distressed, secured loan and then foreclosing on that loan.
If you are interested in pursuing a transaction like this, please give me a call. Our firm has experience with these deals, which encompass real estate, litigation and bankruptcy law.