What Are Commercial Short Sales?
Written by Administrator on December 3rd, 2010What Are Commercial Short Sales?
Commercial Short Sales allow commercial property owners to avoid foreclosure by selling the property for less than the amount owed on their mortgage loan. The lender must approve of the sale and the property owner must prove a financial hardship exist. A number of commercial real estate properties are upside down, where they owe more than what the property is worth. Owners may also not be able to refinance or even qualify for a commercial loan modification or workout plan. Rather than go into foreclosure, commercial short sales may be a cost-effective alternative.
But before a commercial short sale is approved the lender must determine if its in their best interest, as oppose to foreclosure. Commercial lenders are more open to short sales if they will cost less money in the long run. If the owner chooses, A third-party commercial loan workout firm can help negotiate a commercial short sale on their behalf for more favorable terms. Eligible properties: Apartment buildings, office buildings, healtcare facilities, shopping malls, hotels, resorts, industrial and manufacturing facilities.
Allowing your commercial property to go into foreclosure can severely hurt your credit rating. To be honest, commercial short sales can also hurt your credit, but not as damaging as foreclosures.
A very important thing to consider is that the owner may be responsible for the difference in the discounted lender-approved short sale amount and the actual mortgage balance. This difference may be considered taxable income, which could add to the commercial property owners expenses. A good third-party commercial loan workout firm can help avoid this costly error. Its also wise to seek advise from your tax advisor before moving forward with a commercial short sale.
Before thinking about a commercial short sale, all possible options should be considered.
In 2010, Desmond Primus started a blog called “My Commercial Loan Workout Tips”. The purpose of this blog is to provide useful information to commercial property owners who can’t refinance due to the tightening of mortgage underwriting guidelines and declining property values. This problem will likely lead to a wave of loan defaults. By utilizing commercial loan workouts and/or commercial loan modifications, property owners can avoid foreclosure. For more information, please go to http://www.MyCommercialLoanWorkout.com
Article from articlesbase.com
Tags: called, Commercial, Commercial Short Sales, considered, likely, open, Sales, Short, short sale, Short Sales
December 4th, 2010 at 3:41 pm
[...] the original post: What Are Commercial Short Sales? | Tags: allow-commercial, avoid-foreclosure, commercial, property, property-owners, sales, short [...]