Woodland Hills, CA (PRWEB) August 11, 2010
Commercial actual estate lenders normally are motivated to safe a non-recourse loan by adding a powerful guarantor, stated Kevin Levine, Executive Vice President of Strategic Asset Services (SAS) of Woodland Hills, California a business that specializes in industrial workouts and quick sales. In a workout situation they could even be prepared to minimize the principal balance, in exchange for a complete-recourse guarantee by a financially solid guarantor. However lenders in no way will lessen the principal obligation without acquiring some thing of significant value in return.

Levine explained that SAS recently was capable to negotiate a reduction of a industrial actual estate loan with a principal balance of $ four.7 million to $ three million. The lender performed its own valuation analysis, and agreed with our conclusion that the property securing the loan was not worth much more than $ three million and really possibly considerably much less, Levine said. The creating had been unoccupied for some time, and the borrower had provided notice to the lender that it would not continue to make the big month-to-month mortgage payments out of his personal funds, plus pay the house taxes, insurance coverage and ongoing upkeep expenses on the property. So the lender was faced with foreclosing on an empty building and holding it for an indefinite period of time, or accepting a new principal balance of $ three million but with a complete-recourse assure assuring ultimate recovery of that amount.

Each lender has its personal internal policies and procedures, and organization culture, Levine explained. Some lenders have policies in spot that definitely prohibit getting into into a principal reduction with the existing borrowers. In these circumstances, we often can negotiate a short sale or note buy to a third celebration. In other circumstances, the lender has no formal policy prohibiting a principal reduction but the organization culture is resistant to such a outcome, and we have to present a compelling case as to why this is the best course for the lender to comply with in order to maximize its recovery in an already poor scenario. Typically there are multiple levels of authority to be convinced: loan officers, asset managers, problem loan committees, and board of directors.

SAS (http://www.strategicworkouts.com) gives commercial loan modification and short sale services in California and all through the country. The organization is dealing with multi residential, retail, offices, industrial, land and its specialists bring extensive industrial real estate knowledge to each and every assignment, like marketplace evaluation, valuation, legal, and negotiation knowledge. Each borrowers special lending circumstance is totally analyzed, and the borrower is assisted in preparing existing operating reports and projections. Primarily based on the detailed analysis, SAS submits to the lender a loan modification proposal. That proposal may possibly consist of a principal reduction, interest rate reduction, and waiver of penalty charges. In those situations where a loan modification will not function to the mutual advantage of the borrower and lender, SAS will try to broker a short sale of the commercial real estate at a significant discount from the loan balance, or will seek to negotiate a sale of the note to a third-celebration.

SAS is a member of the Peak Corporate Network (http://www.peakcorp.net) headquartered in Woodland Hills, California. In addition to industrial loan modifications, PCN provides mortgage lending, loan servicing, residential brief sale, 1031 exchange, trustee perform, foreclosure solutions, Escrow and actual estate sale brokerage solutions. These solutions are accessible mostly throughout the Western United States for both residential and industrial real estate properties and loans.

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