In recent years, a variety of external factors—including, regulatory costs, political headwinds, falling oil prices, and the increased utilization of natural gas—have placed significant stress on domestic coal companies. Those external factors, in conjunction with significant pension and healthcare liabilities and debt burdens, led to numerous bankruptcy filings within the coal industry.
Looming maturity dates (for which borrowers are not prepared to pay the remaining balance) or other monetary defaults of numerous commercial mortgages may present many opportunities for purchasing property on a discounted basis. With proper precautions and investigation, what appears to be a “deal” really can be a “deal.” However, purchasing a property at a foreclosure sale or other distressed sale has many traps for the unwary. What appears to be a bargain can quickly turn into a nightmare, if the buyer rushes into the purchase without enough information.