Mortgages

Strategic Asset Solutions Sees Increasing Lender Willingness To Modify Commercial Loans

Kevin Levine, Executive Vice President of Strategic Asset Solutions, reports on increasing awareness of commercial lenders to enter into modification agreements with their borrowers.

(PRWEB) March 29, 2010 — “Commercial lenders throughout the United States are becoming increasingly aware of their need to enter into modification agreements with their borrowers,” stated Kevin Levine, Executive Vice President of Strategic Asset Services (SAS) of Woodland Hills, California. “When we first began offering commercial loan modification services in early 2009, many lenders were reluctant to recognize the seriousness of their commercial loan problems and modify the loans,” Levine said. But in the past several months, that recognition has increased dramatically. As a result, we find more and more banks and other lenders welcoming our services on behalf of their borrowers.”

Levine explained that commercial loan values are falling in most markets, and that the office buildings, retail centers and multi-family residences are losing tenants at an increasing pace due to the economic recession. As a result, borrowers are experiencing compressed cash flow, and are unable to meet their loan payments. Unless the loan is modified to reduce the payments, the lender inevitably will be forced to commence foreclosure proceedings. But balance sheets of banks and other lenders are only able to absorb a limited number of foreclosed properties, and that limit is being approached or exceeded by many lenders.

“We saw the same initial reluctance of the residential lenders to work with their borrowers and modify their stressed home loans several years ago,” Levine said. “But just as the residential lenders were forced by declining circumstances to cooperate with the home owners, so the commercial lenders are now being compelled to negotiate with their borrowers. It is preferable for them to have a paying asset, even at a reduced return, than to go through the expense of foreclosure and incur property management expenses during a two-three year holding period while attempting to sell the property.”

SAS offers commercial loan modification services in California and throughout the country. The company’s personnel bring extensive commercial real estate expertise to each assignment, including market analysis, valuation, legal, and negotiation experience. Each borrower’s unique lending situation is fully analyzed, and the borrower is assisted in preparing current operating reports and projections. Then SAS drafts and submits to the lender a loan modification proposal. That proposal may include a principal reduction, interest rate reduction, and waiver of penalty charges. In those instances where a loan modification will not work to the mutual benefit of the borrower and lender, SAS will attempt to broker a “short sale” of the commercial real estate at a significant discount from the loan balance, or will seek to negotiate a sale of the loan to a third-party.

SAS is a member of thePeak Corporate Network of headquartered in Woodland Hills, California. In addition to commercial loan modifications, Peak Network companies offer mortgage lending, loan servicing, short-sale, 1031 exchange, foreclosure, and real estate sale services. These services are available throughout the Western United States for both residential and commercial real estate properties and loans.

# # #

For the original version on PRWeb visit: http://www.prweb.com/releases/2010/03/prweb3771344.htm

© 2010 Realty News Now.