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Ask Loren Your Own Question
Loren, Lawyer
Category: Real Estate Law
Satisfied Customers: 28566
Experience:  30 years of real estate practice experience.
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I owned a commercial building with a single tenant through

Customer Question

I owned a commercial building with a single tenant through a tenant in common llc. I was 10% owner with $700,000 cash invested. We had a ten year fixed rate loan coming up for renewal and our tenant decided to file bankruptcy. We were therefore unable to refinance the property and consequently went into foreclosure and lost the property. This property was valued at over $15 million when leased, we owed under $10 million but lost it all. Is there any way to sue for damages i.e.; the lost property? We are already named in the bankruptcy, and may receive a fraction of our lost rent, I am more concerned about my lost $700K
Submitted: 6 months ago.
Category: Real Estate Law
Expert:  Loren replied 6 months ago.
Good morning. I am Loren, a licensed attorney, and I look forward to assisting you.I am sorry to hear of your dilemma. I realize how frustrating this is for you and I hope to provide you information which is accurate and useful, even though it may not be the news you were hoping to get. Unfortunately, it is not likely to be a viable claim against the former tenant to place responsibility for the foreclosure of the property on them. The claim you can assert is based in contract and the loss of the property in foreclosure is not something which was likely contemplated and addressed in the lease. Additionally, they are not a party to the loan and have no legal obligation to you regarding the repayment of your loan. In other words, the lease does not make them a party to your financing.
Expert:  Loren replied 6 months ago.
I realize this is probably not the answer you were hoping to receive. Also, please remember that this is not a moral judgement on my part. As a professional, however, I am sometimes placed in the position of having to deliver news which is not favorable to a customer's legal position, but accurately reflects their position under the law. I hate it, but it happens and I only ask that you not penalize me with a bad or poor rating for having to deliver less than favorable news.
Expert:  Loren replied 5 months ago.
If you have no further questions, and have not yet done so, please remember to leave a favorable rating (Excellent or Good) so that I am credited by JustAnswer for assisting you. A bonus is not required, but is always appreciated.

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