The Big Takeover
Los Angeles Downtown News
By Anna Scott
... If the bankruptcy process and its many permutations constitute murky waters, foreclosure is the financial Loch Ness.
In Downtown Los Angeles, at least eight residential projects and one hotel have fallen into bankruptcy. Some of those projects, along with others in the area, have also faced foreclosure - an equally complex process with just as many possible endings...
... Lender takeovers have proceeded quickly in some cases, while other projects have languished in the process.
"There's no formula for why one lender isn't acting like this other lender," said Gary Painter, director of research at USC's Lusk Center for Real Estate. "In some cases it's best to go into foreclosure, get what you can and close the books. In other cases, you might have a weak position as a lender so you might want to negotiate. Unfortunately, there's not a simple story to be told."...