(PRWEB) December 29, 2011
Banks are evidencing a willingness to sell their issue industrial actual estate loans at a substantial discount prior to the end of this calendar year, stated Kevin Levine, Executive Vice President of Strategic Asset Options/Peak Asset Options. If those dilemma real estate loans remain on their books via December 31, banks will be required to develop substantial reserves against them, he said. This will effect their earnings reports for the fourth quarter and for 2011 as a entire. And it will decrease their tangible capital ratios. So they have every single motivation to sell those loans and get them off their books ahead of the year comes to a close.

Levine explained that despite the motivation for quick sales, banks will not enter into just any loan-sale transaction. The bank must perceive that the value it will obtain from the year-end loan sale will be equivalent to or greater than what it would get upon foreclosure, he mentioned. In making that calculation, the bank will contemplate the costs of foreclosure and the estimated time delay ahead of the property can be resold. Levine explained that the bank will want a clean sale, with no circumstances and the potential loan purchaser will have to offer a proof of funds evidencing that it has the money to close the transaction in a matter of a few days.

Levine commented that if there is a sturdy guarantor, the bank will be considerably much less prepared to approve a note buy resulting in a book loss. Nonetheless,” he stated, “if the guarantor is insolvent or otherwise financially weak, the bank will not be capable to appear to the guaranty as a source of recovery. If these are the circumstances, the bank could effectively conclude that it is very best to reduce its losses and dispose of the issue asset now.

Strategic Asset Options/Peak Asset Solutions delivers commercial loan modification and quick sale services in California and all through the country. The companys personnel bring substantial commercial true estate expertise to every assignment, like industry evaluation, valuation, legal, and negotiation expertise. Every single borrowers special lending circumstance is totally analyzed, and the borrower is assisted in preparing present operating reports and projections. Then, Strategic Asset Solutions/Peak Asset Solutions drafts and submits to the lender a loan modification proposal. That proposal may possibly contain a principal reduction, interest rate reduction, and waiver of penalty charges. In these situations where a loan modification will not function to the mutual advantage of the borrower and lender, Strategic Asset Options/Peak Asset Options will attempt to broker a short sale of the industrial actual estate at a substantial discount from the loan balance, or will seek to negotiate a sale of the note to a third-celebration.

Strategic Asset Options/Peak Asset Options is a single of the entities in the Peak Corporate Network headquartered in Woodland Hills, California. In addition to commercial loan modifications, the Peak Corporate Network entities offer mortgage lending, loan servicing, residential quick sale solutions, 1031 exchange, trustee operate, foreclosure services, genuine estate brokerage and escrow solutions. For much more details, check out http://www.peakcorp.com

The Peak Corporate Network brand represents a group of associated separate legal entities, every single supplying its exclusive set of real estate solutions.

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