Woodland Hills, CA (PRWEB) December 11, 2010
Much more and a lot more industrial real estate lenders are faced with balloon payments coming due, stated Kevin Levine, Executive Vice President of Strategic Asset Solutions (SAS) of Woodland Hills, California. As a outcome, they are becoming forced to face the stark reality of either renegotiating and extending the loan, or foreclosing on an asset worth substantially much less than the loan balance.

Levine pointed out that a growing quantity of industrial properties across the United States have suffered substantial worth declines. So a percentage of the industrial real estate loans secured by such properties are now beneath collateralized. Lenders normally prefer to have significant loan-to-value ratios, Levine mentioned. This means that their loan underwriting standards require that the there be a large property worth margin say 35-40% – in excess of the loan quantity secured by that property and based on the property type, it may even be greater. That way, when a balloon payment becomes due and is not met by the borrower, the lender can foreclose with self-assurance in its ultimate recovery of the loan balance. But now that those collateral margins have vanished in a lot of instances, the lenders face a dilemma. So it may possibly be a better choice for them to renegotiate and extend such loans, hoping for a rebound in property values that eventually will bail them out.

Many regulated lenders, specifically banks and savings and loans, are possessing substantial capital difficulties in this atmosphere, Levine stated. So taking a huge loss on a under-value commercial real estate loan will additional effect their capital position in a damaging manner. By renegotiating and extending the loan, they may have to boost their reserve against that asset, but that typically will be less of a balance sheet hit than accepting a loss. Banks and other regulated lenders are particularly sensitive to those capital and reserve specifications at quarter ends and especially at year ends. So they are more open to negotiating with the borrowers as these events draw near. We attempt to take benefit of these timing possibilities when we are seeking to arrange a loan modification or other resolution for our borrower customers.

SAS provides industrial loan modification and brief sale solutions in California and all through the country. The companys personnel bring comprehensive industrial genuine estate knowledge to each and every assignment, including marketplace analysis, valuation, legal, and negotiation knowledge. Every borrowers exclusive lending circumstance is fully analyzed, and the borrower is assisted in preparing existing operating reports and projections. Then SAS drafts and submits to the lender a loan modification proposal. That proposal could contain a principal reduction, interest price reduction, and waiver of penalty charges. In these situations where a loan modification will not function to the mutual benefit of the borrower and lender, SAS will attempt to broker a quick sale of the commercial real estate at a substantial discount from the loan balance, or will seek to negotiate a sale of the note to a third-party.

SAS is a member of the Peak Network of businesses headquartered in Woodland Hills, California. In addition to commercial loan modifications, Peak Network firms offer mortgage lending, loan servicing, residential brief sale, 1031 exchange, trustee work, foreclosure solutions, and actual estate sale brokerage solutions. These services are accessible mainly throughout the Western United States for both residential and industrial actual estate properties and loans.

Get in touch with Individual: Kevin M. Levine, Executive Vice President
Business: Strategic Asset Options
Address: 22837 Ventura Blvd., Ste. 105, Woodland Hills, CA 91364
Telephone: (818) 866-9191
Fax: (818) 206-3185
Email: kevin(at)strategicworkouts(dot)com
Website: http://www.strategicworkouts.com

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