Commercial Short Sale – AKA Commercial Loan Short Pay
Today many small businesses that had commercial loans or business loans with local banks find themselves wrestling with a behemoth! The FDIC has taken over many small banks and has sent letters of demand calling loans due long before their proper time.
In many cases these letters take into account that the business or real estate may be worth less than the amount of money that is owed. A lot of the time the business owner is stuck and doesn’t know what to do and they are approached by Commercial Short Sale specialists.
These so-called specialists are opportunist that negotiates to purchase the property from the owner in a strategy known in the residential housing world as a Short Sale. This Commercial Short Sale strategy is often damaging to the business owner and leaves him as a renter of what was once the property he owned.
However, there is another way. The business owner can usually negotiate with the bank or the FDIC to complete what is called a Short Pay. Short Pay strategies can be simple or complicated dependent upon the financial situation of the business and whether the loan is current.
No matter what the financial situation is, a Commercial Loan Short Pay strategy almost always trumps a Commercial Short Sale. With a successful Commercial Loan Short Pay the business still owns the property at the end of the day. The new loan put in place is generally a commercial bridge loan or commercial mezzanine loan with slightly higher than normal rates, but the good news is these loans close quickly and that is exactly what the FDIC is looking for in these situations.
The experts at Dividend America Commercial Lending know how to assist in the negotiations of Commercial Loan Short Pay strategies and can even help those who are in Chapter 11 and/or Chapter 7 Bankruptcy protection. If a commercial loan or business loan is being called early and there is a letter of demand for repayment of a commercial loan Dividend America can help. For quick answers fill out the easy app today.
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