LOAN WORKOUT / RESTRUCTURING
COMMERCIAL SHORT SALES –
Often times a commercial property owner finds themselves in the situation where they owe more on their property than it is worth. In that instance, a ReUrban short sale specialist can attempt to negotiate a short sale on behalf of the borrower with the lender/lenders or the special servicer.
A commercial short sale is a strategy involving a ReUrban short sale specialist determining a fair market price for the property, marketing the property, finding a buyer, and negotiating a purchase agreement with the best price and terms the market will offer. From there the real work on a commercial short sale starts as it is typically after a purchase agreement is received does the lender or special servicer really engage in the negotiation process. At that point, the lender and/or special servicer work together with the ReUrban short sale specialist and determines if the offer is workable given the current market value of the property and the lenders expectation for recovery against the debtor (if any.) If the offer terms and price are agreeable to all parties, the bank then agrees to the short sale and typically the borrower gets out from a underwater property.
The benefit to the lender of doing a commercial short sale is that they avoid having to engage in a lengthy and sometimes aggressive foreclosure action to get at the property saving many thousands of dollars in legal fees. Additionally, the property is not usually left vacant or abandoned for an extended period of time, which greatly reduces loan loss severity for the lender as the property does not develop significant deferred maintenance.
In many instances a commercial short sale can really be a win-win for all parties involved. There are many particulars to any commercial short sale and talking with a one of our short sale specialists will help you determine if a commercial short sale is a viable option.
COMMERCIAL MORTGAGE MODIFICATION --
A commercial mortgage modification or loan workout agreement (restructuring) is a situation where the debtor attempts to renegotiate with their lender or servicer to get some or all of the covenants/terms of an existing loan modified post origination. Depending on if the lender is a local/regional bank or if the loan was part of a CMBS pool will greatly influence the ease by which a commercial loan modification is completed as well as will greatly influence the strategy and situations that are likely to obtain such a modification.
ReUrban has commercial brokers experienced in negotiating and obtaining modifications that accomplish the goals of the involved parties which are needed to get your property and the bank's loan back into a performing state. Some of the services we provide that assist in the obtaining of a commercial short sale is by providing market research, competitive analysis, cost studies, absorption studies, recommending local valuation vendors, and actual term negotiations with the lender/servicer.
COMMERCIAL DEED IN LIEU --
A commercial deed in lieu can be a viable option in very unique situations. Typically a lender is going to want a borrower to explore other avenues before considering taking a deed in lieu of a foreclosure but that is greatly dependent on the lender/mortgage holder.
ReUrban has access to the market intelligence that is required to perform the market research necessary to make and support the case to a lender that a deed in lieu is the best and most viable option. Typical reports include absorption studies to broker price opinions (BPO). These situations are lender, property, and borrower specific so discussing your particular situation is necessary in order to determine if this is a viable option for your specific situation.
Contact Us today to learn more about the ReUrban Special Asset Group's commercial short sale services, commercial loan modification services, or commercial deed in lieu services.
