In 2008, the national economic and credit crisis took a devastating toll on the real estate market. Although Washington seems to have weathered this crisis better than some other areas of the United States going into 2009, banks, investors, and other lenders now directly own or manage area distressed residential, commercial, and industrial properties in unprecedented, ever-increasing numbers. Forecasters now predict it may take years for the real estate market to fully recover.

Eisenhower has a long tradition of providing legal advice to banks and lenders across Puget Sound, and many of our clients now have considerable distressed property portfolios on the books. Eisenhower understands that these clients must not only mitigate current losses related to these properties, but also preserve and enhance their value for future sale as market conditions improve. To assist clients in achieving these critical objectives, Eisenhower has put together a team of experienced attorneys from the firm's real estate, land use, litigation, and bankruptcy practices to provide banking and lending clients with a comprehensive means of assessing and addressing potential legal issues associated with direct ownership of distressed properties after foreclosure, including the following:

• Identifying and maintaining land use entitlements, permits, and construction approvals for properties in development or under construction at time of foreclosure.
  
• Assessing and advising regarding potential premises liability associated with incomplete construction.
  
• Drafting, reviewing, or modifying governing declarations, leases, and similar legal documents.
  
• Responding to claims and lawsuits from local governments and neighborhood associations regarding code and covenant compliance for distressed properties.
  
• Identifying and responding to potential claims from condominium associations and unit owners regarding compliance issues and defective construction.
  
• Providing advice about and preparing legal documents for conversion of unsold condominiums to apartments.
  
• Identifying, preserving, and responding to potential lien and warranty claims.
  
• Preserving claims against bankrupt or insolvent entities currently or formerly associated with the property.
  

Please contact your Eisenhower attorney or Heather Burgess at 253-572-4500 to arrange review of specific properties or portfolios. We look forward to the opportunity this presents to help our clients weather the current economic storm and prepare for brighter days ahead.