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We’ll Be Seeing A Lot More Of Commercial Short Sales
Posted by: | CommentsFirst it was the residential real estate collapse. Now comes the commercial real estate collapse! Commercial has lagged behind residential by 12 to 18 months, but is now here. Commercial foreclosures are all over now.
Commercial distressed properties will overtake residential in the coming year or two. There is a lot more money involved in these properties. Commercial is financed differently than residential. Typically, they have short term 3,7, or 10 year loans on them that need to be refinanced at the end of the term. The problem is the values have dropped 10-50% so it is very difficult to get a loan on them. Many businesses have had greatly reduced revenue which has caused them to downsize or close which put even more pressure on the building owner. Sometimes rent reductions are given to try to keep tenant in the property and in business. Even with this, many companies are closing the doors. Also, the government bailouts have not reached most businesses. (except banks and car manufactures!)
If the owners cannot refinance or pay off the mortgage, the owners may try to hang on, but foreclosure is often the outcome.
Investors are gearing up to tackle this huge opportunity. They can now buy properties for 60 to 90 percent of value. At these rates, often the properties will now cash flow even at reduced rents. Make sure you deal with an investor that has experience in commercial short sales. Also do not pay money up front for negotiations. Legitimate investors will typically do the negotiation with their fees being paid by the lender.
Commercial property owners may be held responsible for the difference amount forgiven for the short sale, and the amount forgiven may be required to act as income on their tax return. Commercial property owners should contact their tax and legal teams before continuing to see how this may impact their overall tax and financial situation.
This method over most others will help the U.S. commercial market regain its stability over the next 3 to 5 years.
Learn more about Commercial Short Sales. Stop by Daniel Wolkoff’s site where you can find out all about foreclosure alternatives and what it can do for you.
categories: Commercial Short Sales
Trying To Avoid Foreclosure? Try These Tips
Posted by: | CommentsPaying bills, especially in today’s economy, is becoming quite the chore for many families. Regrettably, this includes families not being able to pay their mortgage payments. Well, we all know what happens when too many mortgage payments are missed, foreclosure. There is; however, hope. You can avoid foreclosure if you simply take action rather than waiting for the worst to happen.
First off, contact your mortgage company. Most, if not all, mortgage companies have a Mitigation or Loss Mitigation department. This is the department you need to contact. Let them know everything that is going on. You, likely, will need to show proof of financial stability or instability.
The mortgage industry is well backed, enough that they can help in rough situations. After all, they can still take and sell your home. One of the most common approaches that mortgage companies take is offering forbearance. Forbearance allows you to payback what you have missed over a certain period of time.
Other approaches are available. Mortgage companies may give you another loan for the late amount, add the late amount onto the end of the mortgage, or even consider waiving a payment. All of which are fully dependent upon your exact situation.
When people get into a tight spot, they often think the best thing to do is leave and start over. This; however, is the worst thing you can do. There are HUD counseling agencies that are available to aid you in these situations. The likelihood of receiving their help, if you are already gone, is zilch. You will get more assistance if you stay put in your home.
If you have gotten to the point where your mortgage company has already filed a Notice of Default you have lost some of your options. Calling them, at this point, probably will not do any good. You could consider selling your house to pay off the loan. You will have to sell at a low price, but sometimes that is what it takes to save your credit.
There are a couple other options, at this point, but they will you’re your credit almost as bad as the foreclosure would. Just keep in mind that you have options. Acting before things get out of hand is your best option and will be the one that works for you. Do not let things get to the point that there is no return. If you want to avoid foreclosure, work with your mortgage company immediately.
Learn how to avoid foreclosure by using short sales. Head online today and you can learn how a short sale will help you out.
