A California private lending giant was advised by their legal counsel, the leading West Coast-based law firm specializing in private lender representation, to switch all loan documents to California law. The lender turned to GoDocs for help with the implementation.
Enter our Superheroes: Brenda Gordon, chief legal officer and Zach Wallin, senior director of legal operations
With their combined legal expertise and strategic foresight, they invoked the Honchariw precedent, highlighting the potentially significant implications for lenders enforcing defaulted loans—particularly unaccelerated and unmatured loans—governed by California law (relive their strategic analysis here: https://godocs.com/what-is-your-risk-tolerance-level-honchariw-v-fjm-private-mortgage-fund/). The legal team warned the customer of the potential legal and financial issues this global change could unleash.
Trusting in their GoDocs champions, the customer relayed this information back to their own legal counsel. Initially charting a different course, the law firm was swayed by GoDocs’ legal guidance. The law firm reversed their recommendation, acknowledging that Brenda and Zach had empowered the customer to make an informed business decision to avert a potential legal catastrophe. Another victory for GoDocsour customers, where as a result of our proactive legal guidance is a true superpower!
Circumventing a Collateral Catastrophe: How the GoDocs Team Ensured a Smooth Post-Closing
A GoDocs customer’s loan closing was at risk due to issues with collateral property damage. Investor demands and borrower silence compounded the issue, and the customer urgently reached out to GoDocs for assistance.
Enter our Superheroes: Chris Allison, director of document services and the Customer Support Team
Within hours, Chris and the Customer Support Team analyzed the GoDocs loan package, pinpointing the precise terms and clauses to address the issue in question. They armed the lender with safety net options and detailed steps to take if the borrower failed to remedy the damage. The plan included:
- Specific references to relevant clauses within the loan documentation.
- Clear explanations of the lender’s rights and remedies.
- Actionable steps for the customer, including access to GoDocs LegalNet partners, for drafting a letter to the borrower and notifying the loan servicer.
The customer, empowered by GoDocs’ swift and decisive response, immediately took action, notifying the borrower, investor, and servicer. Chris’s ability to provide clarity and guidance transformed a moment of crisis into a display of GoDocs’ unwavering commitment to its customers. Great work team!
