Call It The Trickle-Along Theory

CENTURY CITY, CA-The pace of REO sales and foreclosures is quickening, although the deal volume remains nowhere near the flow that was once expected, according to speakers at Reznick and Ballard Spahr’s ‘Strategies and Solutions for Real Estate Workout and Recapitalization Challenges,’ an event held here Wednesday. GlobeSt.com joined approximately 50 industry executives at the Hyatt Century Plaza in Los Angeles, to hear panelists discuss successful strategies and break down case studies in role-playing scenarios. The event was co-hosted by Reznick Group, a national CPA firm providing accounting, tax and business advisory services to clients nationwide, and by Ballard Spahr LLP, which has more than 475 lawyers in 12 offices in the US.

Jim Vincent, a senior managing director of Reznick Restructuring Solutions, explained that one of the things that have changed about the distress market is that it isn’t just loans that are now being sold. “There is some headway. We are starting to see REO and foreclosures pick up, although it isn’t at the rate people expected,” Vincent said. Vincent served as moderator of a panel titled, “Workout & Recapitalization Strategies,” which addressed the current market and a variety of workout and recapitalization strategies and solutions from the debtor/creditor side, along with considerations of tax/structuring implications.