Bank Calling Note on Long Time Investor

[John Colburn]

A business partner of mine is having a commercial loan called by Citizens bank.

This investor has been investing in real estate since 1990 and built a decent portfolio of assets in Massachusetts. The property in question is a 12 unit apartment bulding in Maynard Ma. which he purchased in 1992. Gross monthly rent is $8,000 per month, and the outstanding loan is $120,000. His credit rating is 830, and he never missed a payment. Citizens bank has seized his assets until the property is sold or the loan is paid in full.

He is trying to evaluate his options, and met a real estate agent yesterday who valued the property at neary $800K.

What are his options other than selling the property at a huge discount to satisfy the loan.