Question 1

What is the enforcement timeline for a note buyer in Florida after purchasing a Miami commercial loan?

Accepted Answer

Florida commercial deeds of trust (used for most commercial loans) allow non-judicial foreclosure with notice procedures similar to California - the note buyer records a Lis Pendens and pursues judicial foreclosure, which takes 8-18 months in Miami-Dade County courts. However, Florida also allows foreclosure by advertisement for some loan structures. The practical Miami note buyer timeline from purchase to completed foreclosure: 12-18 months for uncontested cases, 18-30 months if the borrower contests vigorously. Deed-in-lieu negotiations typically run 60-90 days and are the preferred path for motivated Miami borrowers.

Question 2

How does international buyer demand affect Miami commercial note sale pricing?

Accepted Answer

International buyer demand for Miami commercial collateral is the most significant factor that distinguishes Miami note pricing from other markets. Because note buyers know that any REO they produce from Miami commercial enforcement can be sold to an international buyer at near-market pricing, the floor value of Miami commercial notes is higher than comparable notes in Houston or Dallas. Miami commercial non-performing notes trade at 70-85% of UPB (versus 55-75% in Houston) partly because of this international liquidity premium on the underlying collateral.

Question 3

Are Miami commercial note sales accessible to South American and European family offices?

Accepted Answer

Yes - international capital actively purchases Miami commercial notes as a dual-purpose strategy: they acquire enforcement rights over Miami commercial real estate collateral (which they want to own outright) and they have a contractual path to take title via enforcement if the workout does not produce a negotiated solution. Latin American and Israeli family offices are the most active international note buyers in Miami. European capital tends to prefer direct equity acquisitions over note purchases. Note buyers must comply with FIRPTA (Foreign Investment in Real Property Tax Act) when taking title to US real property through enforcement.