Apr
27

Dos and Don’ts of Purchasing Distressed Loans

By
– rebusinessonline.com

A wide variety of loans secured with commercial real estate mortgages are in distress because economic conditions have reduced the tenants’ ability to pay the owner the amount necessary to service those loans, or refinancing of maturing loans has become extremely difficult. This difficulty has been caused by the decline in real estate values and by the dearth of lenders in the market.

In this environment, the loanholder is faced with some difficult choices. One option is foreclosure, but this can be a long and expensive process. If the lender does successfully foreclose, it will become the property owner, which for many lenders is not a desirable result. Most lenders do not have the experience necessary to effectively manage commercial real estate. In addition, many lenders do not want to incur ownership liabilities.

ARTICLE SHORTENED DUE TO LENGTH….

LINK TO ARTICLE HERE

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