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A BANK FORECLOSED ON A HOTEL (LLC) AS OF 11/15/2010. THIS WAS

 
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A BANK FORECLOSED ON A HOTEL (LLC) AS OF 11/15/2010. THIS WAS A
NON-RECOURSE LOAN. I JUST WANT TO CONFIRM THAT THIS WOULD REDUCE
THE PARTNER'S BASIS BY THEIR SHARE OF THE FORECLOSED LOAN.

 

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State/Country relating to question: North Carolina

Submitted: 733 days and 23 hours ago.
Category: Real Estate Law
Value: $28
Status: CLOSED

Accepted Answer

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Expert:  Attorney & Counselor replied 733 days and 22 hours ago.

Hi,

Probably yes, but the answer to your question would depend on the written terms of the partnership agreement. Most general partnerships involving hotels provide that all partners shall be equally responsible for for all liabilities and assets. If the hotel was considered an asset prior to the foreclosure, the loss of that property would reduce each partner's asset value by an amount equal to the percentage of ownership of the hotel.

I hope my answer helps with your understanding. Thank you for using Just Answer!

Expert TypeLawyer
Category: Real Estate Law
Pos. Feedback: 100.0 %
Accepts: 197
Answered: 4/6/2011

Experience: Attorney & Counselor at Law with significant real estate law experience.

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