Question 1

Which Los Angeles banks are most active in commercial note sales in 2026?

Accepted Answer

California regional banks that originated significant commercial real estate loan volumes in 2019-2022 are the primary sellers. Western Alliance, Pacific Premier Bancorp, and Banner Bank have each executed commercial portfolio note sales. Community banks in the $1-10B asset range are the most active note sellers on smaller individual loan transactions. National banks (Wells Fargo, JPMorgan) rarely sell individual commercial notes - they use CMBS securitization or hold to maturity. The FDIC is also a note seller when California banks fail - FDIC-administered note sales have occurred for several failed California banks.

Question 2

Can a note buyer in California foreclose non-judicially after purchasing a commercial note?

Accepted Answer

Yes - California non-judicial foreclosure rights (power of sale under a deed of trust) transfer to the note buyer upon assignment of the deed of trust. The note buyer records an assignment of deed of trust, then can record a Notice of Default and proceed to trustee sale within 111 days (three-month reinstatement period plus 21-day notice of sale period). However, California borrowers who file Chapter 11 stay the non-judicial foreclosure - so the note buyer must either wait for the bankruptcy to conclude, lift the stay (litigated motion), or negotiate a sale through the bankruptcy process.

Question 3

What is the typical note sale process for a Los Angeles commercial loan?

Accepted Answer

Bank-originated commercial note sales in LA are marketed through commercial real estate capital markets brokers (Newmark, CBRE, JLL) or directly through the bank's special assets department. Buyers sign an NDA and receive a credit summary package including: loan documents, property appraisal, rent roll, operating statements, and a servicing history. Buyers submit bid letters with price and closing timeline. The seller accepts a bid, executes a Loan Sale Agreement, and closes through an escrow with an assignment of mortgage/deed of trust. Timeline from NDA to close: 30-60 days for straightforward loans.