Company Proposing TIC Arrangements As A Foreclosure Alternative
Dees Stribling of Commercial Property News reported in his article "NetLease Q & A: New TIC Structures Proposed by Prudential Rand's Rand" that Greg Rand of Prudential Rand Realty in New York is currently exploring with his clients the idea of setting up a TIC-like structure to avoid foreclosure.
Dees Stribling describes the concept and structure, "Instead of foreclosing on a residential property - anything from single-family to owner-occupied multifamily properties - a lender becomes fractional owners in the property with a borrower who can afford a reduced mortgage payment. The lender receives a piece of the equity and the borrower still pays on the financing of his or her share of the property. Foreclosure is forestalled, and possibly both the lender and borrower are in a position to ride out the current economic storm."
The rest of the article contains an interview with Greg Rand and CPN.
This is a really creative solution that may help a lot of borrowers and the real estate market as a whole by reducing the current inventory of property.
What is your take on this concept?
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