WFCM 2024-5C1

The loan was transferred due to payment default and borrower's failure to pay the insurance premiums resulting in cancellation of the policy. SS subsequently posted the properties for foreclosure, however, in November 2025, Borrower filed bankruptcy to prevent Lender from completing the foreclosure sale. In March 2026, the court approved the appointment of a chapter 11 trustee, who has since completed the transition of property operations. Recently, the court lifted the stay and thus, SS is positioning to take tile in the near term. Additionally, litigation against the guarantor remains ongoing.

The Loan transferred to special servicing on 2/19/2025 due to payment default. At ASC's direction, counsel filed a foreclosure complaint, a motion for the appointment of a receiver and initiated a lawsuit against the guarantor. In May 2025, the judge approved the receivership motion, however, Borrower filed bankruptcy shortly thereafter to prevent the receiver from taking over operations of the property. Counsel conducted the rule 2004 examination in July and filed the lift stay motion in August. In response to Lender's motion to lift stay, Borrower filed a reorganization plan but the plan lacks details. Recently, the court granted full stay relief after Borrower failed to perform per the terms in a prior stipulated order. ASC is Working with local counsel on resuming the foreclosure action and coordinating the reappointment of the receiver. Recently, the judge entered an order granting default judgement against the guarantor.