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Updated over 8 years ago, 03/20/2016
Foreclosing on a LLC borrower who has filed for bankruptcy?
The scenario is the following:
as a private lender, I have a 1st lien on a property (in washington dc) to a borrower who is an LLC - and unable to make payments. I am going thru the non-judicial foreclosure process to recover the property. The LLC filed for bankruptcy and the owner is blocking recovery of the property. Is there any recourse to reduce the risk for this type of scenario in the future - i.e. thru other protections (e.g. personal guarantees, cross collateralization, etc.) Thank you in advance for your replies.