Woodland Hills, CA (PRWEB) January 13, 2011
Lenders generally are reluctant to modify a industrial actual estate loan for far more than 12-18 months, stated Kevin Levine, Executive Vice President of Strategic Asset Solutions (SAS) of Woodland Hills, California. In some situations, they will agree to consider an extension of the loan modification topic to assessment and at the lenders sole discretion, Levine mentioned.

Levine explained that there are a number of modification options available with regard to a difficulty industrial genuine estate loan. The simplest loan modification is for the lender to lessen the interest rate, thereby limiting the month-to-month payment, he stated. One more resolution is to provide for interest-only payments for a time, then improve the monthly principal payments soon after the modification period ends or add the deferred principal to a balloon payment. The lender also can extend the loan term. And in a couple of instances, the parties could even negotiate a principal reduction. Levine explained that the numerous loan modification alternatives are not mutually exclusive, and might be combined. For example, the lender could agree to lessen the interest rate, let interest-only payments, and extend the terms of the loan, all as provisions of one loan modification, Levine explained.

The benefit of any loan modification to the borrower is that it buys time for the economy and the real estate market to turn about and recover and, in the case of an owner-occupant, for the purchasers underlying company to be restored to profitability, Levine continued. Nevertheless, if the financial and genuine estate marketplace fundamentals do not significantly improve for the duration of the modification period, the borrower may locate it is back in the exact same untenable circumstance when the modification expires, he stated.

Levine reported that he is seeing many circumstances in which a loan modification was granted to an investor-borrower in hopes that the propertys rent roll would stabilize. But all also usually, the borrower finds that even at full occupancy, gross rental revenue has been reduced due to the common decline in market prices. Of course, this depends upon the quality of constructing, particular marketplace, and other relevant elements, Levine mentioned. The only continuous is that every situation is various, he commented.

The barriers usually present to achieving the borrowers objectives by means of a loan modification are a principal purpose we will attempt to negotiate a brief sale of the home to a third celebration, Levine said. And a third decision, in suitable scenarios, is to attempt to have a third party buy the note from the lender. Every of these approaches has various legal, economic and tax consequences for the borrower based upon his or her specific circumstances.

SAS provides commercial loan modification and short sale solutions in California and throughout the nation. The companys personnel bring extensive commercial real estate knowledge to each and every assignment, like market place analysis, valuation, legal, and negotiation expertise. Each and every borrowers exclusive lending situation 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 might incorporate a principal reduction, interest price reduction, and waiver of penalty charges. In those situations exactly where a loan modification will not operate to the mutual advantage of the borrower and lender, SAS will try to broker a short sale of the commercial true estate at a important 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 Corporate Network headquartered in Woodland Hills, California. In addition to commercial loan modifications, the Peak Corporate Network delivers mortgage lending, loan servicing, residential brief sale, 1031 exchange, trustee function, foreclosure services, and true estate sale brokerage solutions. These solutions are accessible mostly throughout the Western United States for each residential and industrial actual estate properties and loans.

Contact Particular person: Kevin M. Levine, Executive Vice President
Company: Strategic Asset Options
Address: 5900 Canoga Avenue, Ste. 200, Woodland Hills, CA 91367
Phone: (818) 866-9191
Fax: (818) 206-3185
Website: http://www.strategicworkouts.com

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