Sometimes the only alternative to the black mark of foreclosure on your credit report and resolving your debt issues on your commercial mortgage is to sell the property at a discount. With short sales commercial properties such as shopping centers, strip malls, retail stores, office buildings and other similar distressed properties with high vacancies, low-to-negative cash flow, poor management or even partnership disputes can benefit as there is always an interested investor who is looking to make your financial burden into a profitable venture for the next owner. Often these businesses are not even what you would consider down and out, but simply can no longer be managed effectively by the current owner.
Distressed business owners who are already working with a commercial loan workout representative will probably find that they already have access to short sale buyers through that representative. Once a commercial forensic loan audit is conducted and all the necessary information obtained, alternatives to resolving commercial property issues can be uncovered and pursued. Once all alternatives have been explored, the only remaining one is often a short sale where the property is sold much lower than its market value. Typically a commercial short sale can close much faster than its residential counterpart, with the mortgage holder usually given a week to accept or reject an offer once it has been made and a deposit put down. The property is generally sold at much lower than its true market value, but this affords the seller to cover costs quickly and perhaps refocus their finances on much more profitable ventures.
Tags: avoid foreclosure, commercial forensic loan audit, commercial loan workout, commercial short sale, short sales commercial