For lenders, conducting the appropriate level of pre-foreclosure environmental due diligence is crucial to managing the risk of lender-owned real estate portfolios. Though the economy is on a tenuous path to recovery, commercial real estate foreclosures persist. Lenders may be dealing with foreclosure backlogs for years to come.
Partner’s Amy Rudegeair co-authored an award-winning article advising lenders on loan work out due diligence: Guidance for Environmental Due Diligence in Loan Work Out Situations.
The article offers options for due diligence (including pre-foreclosure Phase I Environmental Site Assessments, Limited ESAs and other options), and details primary regulatory concerns and common environmental risks encountered at foreclosure. Also noted are solutions to managing identified risks, avoiding liability, and valuating the property.
The article was selected as the winner of the 2009-2010 national paper writing contest by the Risk Management Association.
Partner Engineering and Science, Inc. has several former environmental bankers on staff and routinely advise our clients on all manner of due diligence. For more information, feel free to give us a call: 800-419-4923.