David Quigley Quoted in Connect Real Estate on Pre-Foreclosure Due Diligence
Connect Real Estate has quoted Akin Gump environment and natural resources head David Quigley from a recent webinar on pre-foreclosure due diligence. Given the current high rate of forbearance seen among commercial property loans, as well as the economic uncertainty caused by the COVID-19 pandemic, Quigley stressed the importance of preparation for lenders before taking problem loans to the foreclosure stage.
Among the pitfalls that may be encountered, the article says, is culpability for environmental issues associated with a property. According to Quigley, under the Comprehensive Environmental Response, Compensation, and Liability Act that Congress passed in 1980 and commonly known as Superfund legislation, “the roster of people who can be held liable is quite broad.”
The article notes that the pandemic has created a new hurdle to overcome in conducting due diligence, such as limiting access to a property and hampering information-gathering. Quigley observed, “COVID has definitely required us to open a new bag of tricks in many cases.” He also stressed the importance of emphasizing clear communication among all parties to the due diligence process.