Steel Forest Lending
We Weather the Storm!
In the challenging landscape of today’s real estate market, where unexpected financial pressures can quickly escalate into foreclosure threats, many property owners find themselves navigating complex debt situations. At Steel Forest Lending, we specialize in providing rescue capital and strategic solutions for distressed assets.Our Debt Restructuring Program combines thorough forensic analysis, experienced legal expertise, and targeted financing to help qualified clients explore pathways toward resolution. This is not a guaranteed outcome for every situation—results depend on individual loan details, lender responses, and applicable laws—but for many, it has meant the difference between losing a property and repositioning for long-term stability
About
Us
Our Vision
Our opportunistic approach
and our team’s extensive
expertise at the
intersection of real estate
and distressed debt allows
us to capitalize on continued
flow of over-leveraged and
distressed assets in need of
rescue capital or asset
re-positioning.
Loan Programs
Steel Forest Lending specializes in working with property owners in default to get them back on track with their lender.
Stabilized Bridge Loans
Purpose These flexible bridge loans provide short-term financing for recently renovated or newly constructed properties. They support assets that are either actively listed for sale or in the process of transitioning to stabilized rental operations.
Key Features
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No ongoing Debt Service Coverage Ratio (DSCR) requirement during the loan term.
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DSCR-based exit strategy for properties listed for sale or soon to be listed.
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Financing available for rented properties that are not yet qualified for permanent, long-term financing.
Loan Parameters
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Loan Amount: $50,000 to $3,000,000
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Term Length: 12 months, with extensions up to 18 months available at the lender’s discretion
Property Types Single-family residences, 2-4 unit properties, townhomes, Planned Unit Developments (PUDs), and warrantable condominiums.
Leverage and Coverage Guidelines
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Maximum Loan-to-Cost (LTC): 85% of the purchase price plus verified completed capital expenditures (applicable if the property has been owned for less than 6 months).
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Maximum Loan-to-Value (LTV): 70%
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Minimum DSCR (Exit): 1.10, calculated based on the lower of in-place rents or market rents.
Additional Eligibility Criteria
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Property Condition: C2 or better; properties rated C4 or better are acceptable provided there is no deferred maintenance.
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Minimum FICO Score: 580
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Collateral Restrictions: The property value must fall within the 90th percentile of the local market; rural, exotic, or unique properties are excluded.
Fix and Flip Loans
Ideal for Investors acquiring, renovating, and reselling residential properties to realize short-term gains.
Key Parameters
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Property Types: Residential (1–4 units)
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Loan Amount: $50,000 to $3,000,000
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Maximum Loan-to-Cost (LTC):
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90% of the purchase price
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100% of verified rehabilitation costs
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Maximum Loan-to-After-Repair Value (ARV): 75%
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Term Length: 12 months, with extensions up to 18 months available at the lender’s discretion
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Recourse: Full recourse
This program offers substantial leverage on both acquisition and renovation expenses, enabling experienced investors to execute value-add strategies efficiently while maintaining conservative after-repair value limits to mitigate risk.
Ground Up Loans
Ideal for Investors developing new residential properties from the ground up, including land acquisition and full construction.
Key Parameters
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Property Types: Residential (1–4 units)
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Loan Amount: $50,000 to $3,000,000
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Maximum Loan-to-Cost (LTC):
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Up to 75% of the lower of land value or purchase price (reduced to 60% if unpermitted) + 100% of construction costs
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Maximum 85% of total project costs (up to 90% if an interest reserve is financed)
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LTC catch-up draw available to increase the initial advance to 75% upon post-closing approval of required plans and permits
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Maximum Loan-to-After-Repair Value (ARV): 70%
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Term Length: 12 to 24 months
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Recourse: Full recourse
What
We
Offer
Financial Advisory
Steel Forest Lending launched its Real Estate Income Strategy in 2010, during a period of significant market uncertainty following the global financial crisis and the ensuing downward pressure on real estate values. Recognizing the challenges posed by volatile and unpredictable market conditions, the firm identified an opportunity to expand its real estate platform through targeted investments in distressed or “faulty debt” — mortgage assets that may carry technical, servicing, or compliance-related issues from origination or administration.
Audit & Assurance
Our process begins with a comprehensive loan audit, often referred to as a Forensic Analysis Report. This is a thorough, scientific investigation of the mortgage documents, servicing history, and compliance with federal, state, and local lending laws. As noted in our Audit & Assurance services, it is widely recognized that a significant percentage of mortgages may contain technical or procedural issues stemming from origination or servicing practices.
Steel Forest Lending partners with a network of highly specialized attorneys who bring deep expertise in real estate law, banking regulations, and distressed debt workouts. These professionals have extensive experience reviewing Forensic Analysis Reports and utilizing them strategically in legal proceedings.
Once a settlement is reached, Steel Forest Lending steps in as the financing partner. We provide re-positioning capital tailored to the client’s needs—specifically, a new 12-month mortgage (extendable under qualifying conditions) structured as a stabilized bridge loan or similar product. This new financing satisfies the agreed-upon settlement with the original lender, pays off the discounted amount in full, and clears the title.
Supporting Heirs Through Estate Transfer Scenarios
At times, an unfortunate life event occurs when the head of the household passes away, leaving the property titled solely in their name. The mortgage then falls into default due to the interruption in payments, creating a challenging situation for surviving family members. This is a deeply personal and difficult circumstance, yet in many cases it can be addressed through structured financial and legal solutions.
Steel Forest Lending’s Debt Restructuring Program offers a practical pathway for qualified heirs. Our team first works with the heir to the estate to properly qualify them for possession and legal transfer of the property. Once the heir has been qualified and the estate documentation is in order, we can provide a 1-year Bridge Loan in the heir’s name. This bridge financing is designed to satisfy the outstanding mortgage obligations, bring the loan current or settle it through negotiated terms where applicable, and allow the heir to take clear possession of the property without the immediate pressure of foreclosure.
Because the property has gone into default following the passing of the original borrower, the heir often does not qualify for a conventional mortgage at that stage. Our 12-month Bridge Loan serves as a critical interim solution, providing the necessary capital and time to stabilize the situation. During this period, the heir can focus on probate or estate administration matters, address any deferred maintenance, and begin rebuilding financial stability.
After the successful completion of the 12-month Bridge Loan term, and assuming the property and the heir’s situation meet our underwriting criteria at that time, Steel Forest Lending can then refinance the property with a new conventional loan. This second-step financing transitions the debt from the short-term bridge structure into a longer-term, more traditional mortgage product, potentially at improved terms that reflect the now-stabilized ownership and payment history.
This estate transfer support is one of several flexible options within our broader Debt Restructuring Program. It recognizes the unique challenges that arise when death intersects with real estate debt, while providing a compliant, step-by-step bridge to long-term ownership. As with all our solutions, outcomes depend on specific estate details, jurisdiction-specific probate laws, the strength of supporting documentation, and the heir’s ability to meet qualification standards at each stage.
By addressing both the immediate default and the longer-term financing needs, this approach helps preserve family assets, avoids prolonged legal complications, and gives heirs a clear path forward—turning a difficult transition into a manageable and ultimately stable outcome.
Tax
A deficiency judgment is an unsecured money judgment against a borrower whose mortgage foreclosure sale did not produce sufficient funds to pay the underlying promissory note, or loan, in full.
Fraud prevention
The New York State Assembly passed the “Foreclosure Fraud Prevention Act of 2012” which imposes criminal liability on those in the mortgage business who use allegedly fraudulent and deceptive practices in connection with a foreclosure action, and the Managers who “recklessly tolerate” any such practices.
Savings solutions
One of our greatest strengths lies in the ability to identify faulty debt subsequently maximizing the value of Assets once re-positioned thus generating strong returns for our company.
Why
Us
Deep Industry Knowledge
We understand the importance of industry knowledge - it's at the heart of our business. Our industry experts are central to our services, providing strategic insight and current market intelligence.
Our professionals give a perspective gained from a dedicated industry focus. Their industry insights and relationships provide a truly distinctive edge.
Years of Experience
In short, we know the market inside and out. Our highly specialized team of Lawyers, Bank & Real Estate professionals know the back stories of all of the major players involved on both the operating and investing side, and can attract, influence and maintain proven candidates who deliver critical value and open the doors to new opportunities for our customers.
In-house Research Teams
Research and Analysis of the Legal Process in any defaulted debt position is the Key to our Success, therefore, Our team works to identify, pinpoint, and prove Key Irregularities in a Creditor's process that will secure a meritorious defense which leads to having Distressed Debt significantly discounted and or in extraordinary circumstances vacated.
Unparalleled Legal expertise, fresh thinking, exceptional talent and strong values; our people are the key to our success. We rely on their knowledge, expertise and ability to innovate.
Business Locations
Our Address
1460 Broadway, 14th Floor
New York, New York 10036
Tel: 1-888-873-8977
Florida Office
7901 4th st N
St. Petersburg, Florida 33702