Wells Fargo wins Alabama Supreme Court fight over hotel receivership debts
Recently, the Alabama Supreme Court, in an appeal involving commercial real estate debts, reversed a lower court ruling and provided direction to lenders, mortgage servicers, and closers as to whether the closer and lender have to pay unsecured claims that arise prior to the appointment of a receiver appointed to manage the hotel located on the commercial real estate prior to the payments made to secured creditors. The Court’s ruling in this case affirms the priority of secured lenders in situations in which secured and unsecured debts exist with real property and the businesses operated on said real property. Here is the story:
