Commercial Loan Workouts Can Help Delinquent Borrowers
Since a large number of commercial property owners can't refinance, now is the time to take advantage of commercial loan workouts. Commercial loan workouts can help delinquent borrowers get back on their feet.
As we head further into 2110, more bad news exist for the commercial estate market. According to credit-rating agency Realpoint,"Delinquent unpaid balances in commercial mortgage-backed securities increased to $47.82 billion, up $1.87 billion in February". Frank Innaurato, Managing Director of Realpoint also said "based upon an updated trend analysis, we now project the delinquency percentage to grow to between 8 percent and 9 percent through mid-2010, potentially approaching and surpassing 11 percent to 12 percent under more heavily stressed scenarios through the year-end 2010”!
Judging from the above data, it does not look good for commercial mortgage backed securities. A major reason we can expect a tidal wave of delinquencies is that a slew of balloon payments are now coming due on these commercial mortgages taken out 7 to 10 years ago. Unable to refinance, late pays will continue to rise.
Banks, facing a potential onslaught of loan defaults are more willing to help borrowers by performing commercial loan workouts. Commercial loan workouts are special arrangements lenders make with delinquent borrowers to avoid going into foreclosure down the road.Commercial loan workouts can consist of making payment arrangements, lowering the interest rate, extending the maturity date or even lowering the principal balance. The whole process usually takes between 30 to 60 days.
All kinds of commercial properties can benefit form a commercial loan workout, such as apartment complexes, condo developments, malls, restaurants, medical buildings, hotels, officer buildings, resorts, etc.
An important thing to remember when seeking a commercial loan workout is whether or not its in the bank's or lender's best interest to approve a commercial loan workout or permit foreclosure. A key factor is the overall financial standing of the delinquent property owner. Does the owner have or will have enough cash flow to repay the loan? This and many other factors will determine if a commercial loan workout is the best solution.
For more information, please go to: http://www.MyCommercialLoanWorkout.com
As we head further into 2110, more bad news exist for the commercial estate market. According to credit-rating agency Realpoint,"Delinquent unpaid balances in commercial mortgage-backed securities increased to $47.82 billion, up $1.87 billion in February". Frank Innaurato, Managing Director of Realpoint also said "based upon an updated trend analysis, we now project the delinquency percentage to grow to between 8 percent and 9 percent through mid-2010, potentially approaching and surpassing 11 percent to 12 percent under more heavily stressed scenarios through the year-end 2010”!
Judging from the above data, it does not look good for commercial mortgage backed securities. A major reason we can expect a tidal wave of delinquencies is that a slew of balloon payments are now coming due on these commercial mortgages taken out 7 to 10 years ago. Unable to refinance, late pays will continue to rise.
Banks, facing a potential onslaught of loan defaults are more willing to help borrowers by performing commercial loan workouts. Commercial loan workouts are special arrangements lenders make with delinquent borrowers to avoid going into foreclosure down the road.Commercial loan workouts can consist of making payment arrangements, lowering the interest rate, extending the maturity date or even lowering the principal balance. The whole process usually takes between 30 to 60 days.
All kinds of commercial properties can benefit form a commercial loan workout, such as apartment complexes, condo developments, malls, restaurants, medical buildings, hotels, officer buildings, resorts, etc.
An important thing to remember when seeking a commercial loan workout is whether or not its in the bank's or lender's best interest to approve a commercial loan workout or permit foreclosure. A key factor is the overall financial standing of the delinquent property owner. Does the owner have or will have enough cash flow to repay the loan? This and many other factors will determine if a commercial loan workout is the best solution.
For more information, please go to: http://www.MyCommercialLoanWorkout.com
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