5/20/12 BP Newsletter: Pacing Your Investments, Increasing Profits, & Speeding Up New Deal Screenings

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Learn Unique Marketing Strategy Designed to Sell Connecticut Homes Fast

Thursday, October 07

It's a buyer's market and thousands of Connecticut homes are sitting on the market for several months, if any offers are received. After a while with no bites, listing prices are lowered. No bites again, then the home price is lowered again and so forth. Does this sound familiar?

With no signs that the real estate market is turning around, Connecticut homeowners trying to sell their homes are losing money each month their property goes unsold. In this slow real estate market, owners must use radical strategies to get their Connecticut home noticed with potential buyers.

A unique, rarely used marketing strategy is available to set your Connecticut home out from the rest. The marketing method was stumbled upon by a FL homeowner several years ago while desperately trying to sell his house. The marketing method was desgined to get the phone ringing, get multiple offers and get his property sold in weeks, not months. With a little tweaking along the way with his Real Estate Agent, he was able to sell his house, even in a down market.

For owners of Connecticut homes, now is the time to try a different approach to sell your property in today's slow market. The traditional way of selling takes much longer. Each month your house sits on the market, means money lost.

If your listing has expired, or you are thinking of listing your Connecticut home, please visit: www.MyCTRealtor.info for additional information.   

Tagged as: realtor, real, estate, ct, connecticut, home, homes, house, houses, marketing, market, listing, listings, homeowner, sold, for, sale, by, owner, expired, fast


Rescue Capital Provides Relief to Distressed CRE

Thursday, July 08

Rescue Capital Provides Relief to Distressed CRE

"Rescue Capital" are funds provided by investors to help restructure commercial mortgages in default, or heading toward foreclosure. In return for injecting needed capital into a proposed commercial loan modification / commercial loan workout deal, Investors become equity partners and lenders are more willing to restructure non-performing notes.

According to a recent CoStar Group article by Randyl Drummer, William R. Lindsay, co-founder of the San Francisco-based real estate investment firm, PCCP,LLC stated "the pendulum has swung back a bit toward the borrower, if the borrower is in a position to take advantage of opportunities that are coming as well-capitalized lenders move through their inventory of workout assets -- and "make commercially sensible decisions about what assets to take back, what to modify and what to sell at a discount."

Rescue capital can be used as leverage for lenders to approve commercial loan workouts by reducing principal amounts, extending loan terms, lowering interest rates, resetting balloon payments, deferring payments, lowering fees, etc. Funds can also be used by borrowers for operating, renovation and leasing expenses.

A resourceful third-party, commercial loan workout firm should have access to rescue capital. Investors with rescue capital funds should offer one or more of the following services:

1) Provide incentives for lenders to modify commercial loans
2) Help borrower to possibly refinance into a new loan
3) Purchase mortgage notes reaching their maturity date at a
discount.
4) Provide operating expertise
5) Generate a detailed financial analysis report to provide
strategic decision-making.
6) Give useful knowledge of specific lender practices
7) Offer real estate market insight and established professional
relationships.

For owners of distressed commercial real estate who can't refinance, are behind on their mortgage payments or facing foreclosure, rescue capital can provide needed funds to obtain a 

commercial loan workout approval and get back on the road to financial recovery.

For more information, please visit: http://www.mycommercialloanworkout.com/

Tagged as: commercial, loan, workout, modification, rescue, capital, refinance, mortgage, foreclosure, default, debt, investor, real, estate, distressed, balloon, payment.properties, investment, investors


Expect Commercial Mortgage Loan Defaults to Keep Rising Says Fitch

Tuesday, June 22

A recent report by Fitch indicates commercial mortgages backed by securities (CMBS) will continue to rise for the rest of 2010. Managing Director, Mary MacNeill said that liberal underwriting was a contributing factor for loans originated in 2007 to account for about 35% of defaulted principal loan balances. The numbers suggests there is no end in site for an increase in defaulted commercial real estate loans.

Commercial loans issued with 5,7 or 10 years terms and with balloon payments are starting to reset in the first wave. Since almost half of all commercial properties are "underwater", a good number of borrowers won't be able to refinance into new loans.

Commercial loan workouts can pave the way for property owners facing default, or already in default, to modify their current loan terms to prevent foreclosure. Commercial loan workouts can restructure the existing loan by reducing the interest rate and/or principal amount, extend loan terms, reset the balloon payment, lower fees and make affordable payment arrangements. The commercial loan workout approval process takes about two months or so to complete, depending on the situation.

For more information, please click link: http://mycommercialloanworkout.per.fm/
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Tagged as: commercial, loan, workout, modification, restructure, modify, reset, payment, balloon, default, foreclosure, distressed, properties, real, estate, mortgage, investor, note, banks, interest, rate


Rising Commercial Real Estate Loan Defaults May Rival Residential

Thursday, June 17

As commercial real estate loan defaults increase, the need for commercial loan workout solutions offered by lenders to remedy the situation will also increase. Several factors seems to support this view.

An excellent online article written by Gene Fisch, Jr. and Archana Sivadasan at Roubini.com states that "shorter loan maturities, inability to refinance, rate resets, and weak economy are several of the major factors which affect the scale and breadth of CRE loan defaults." With slow improvement in the economy, The next shoe to drop, commercial real estate could delay a full recovery. Commercial loan workouts may be in the lender's best interest to keep "in the black".

There are basically two types of commercial lenders: Lenders, such as banks and life insurance companies, who keep portfolios of loans they originated and lenders who are "conduits", who package pools of commercial mortgages into "CMBS", or Commercial Mortgage-Backed Securities, to be sold to the investment market. Portfolio lenders are easier to obtain a commercial workout, due to the fact they retain originated loans. Conduit lenders sell their mortgages to investors, and if borrowers default on their commercial mortgages, the loan most likely will be transferred to a "special servicer". Special servicers, manage troubled loan assets on behalf of investors that are nearing default, or currently are in default. Commercial loan workouts must go through these special servicers for CMBS type loans.

Striking Differences in Commercial and Residential Mortgage Products

The Roubini.com CRE default article made this observation: "Unlike residential loans, which have 15 to 30 year maturities, loans on existing commercial properties have shorter durations with 3 to 10 years and a final balloon payment at the end of the term.[11] As a result, CRE loans generally require refinancing to be paid off. Residential borrowers, who meet their monthly debt service, do not have the obligation to refinance. They could pay off the loans completely at maturity. Commercial borrowers, facing shorter loan maturities and balloon payments, must refinance in order to avoid default." So even if a commercial borrower has excellent credit, the chances of obtaining refinancing are slim, especially if their commercial property is underwater.

As an alterative solution to defaulting, or losing their Commercial property, borrowers can apply for a commercial loan workout to restructure current loan terms, reset balloon payments, lower interest and/or principal payments and even set up a payment plan. But borrowers don't have to wait until they default. Borrowers who know down the road their cash flow will decrease and financial hardship will follow can apply for a commercial loan workout.

For more commercial loan workout information, please click link: commercial loan workout
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Tagged as: commercial, loan, workout, modification, restructure, modify, default, foreclosure, non, performing, note, real, estate, properties, distressed, banks, terms, balloon, payment, reset, maturity


Commercial Loan Workouts Could Jumpstart Banks With Non-Performing Loans

Thursday, June 17

Commercial loan workouts could help many small regional and local banks that have non-performing, commercial mortgage loans. Commercial loan workouts can take existing commercial mortgage loans and restructure them to more favorable terms.

Just look at recent figures in an article by Zacks Equity Research posted on Zacks.com website, entitled: "U.S. Bank Failures Stretch to 81". The article stated "In the first quarter of 2010, the number of banks on the FDIC's list of problem institutions grew to 775 from 702 in the fourth quarter of 2009. This is the highest since the savings and loan crisis in the early 1990s". The Zacks.com article also said that "increasing loan losses on commercial real estate are expected to cause hundreds more bank failures in the next few years. The FDIC anticipates bank failures to cost about $100 billion over the next three years."

Banks with large holdings of commercial mortgages stand a greater risk of collapsing and adding non-performing loans to their books. Due to federal regulation, banks want to limit if all possible, "toxic" or non-performing commercial mortgages from the portfolios. What tool can change defaulted loans back into potentially, performing loans?

Commercial loan workouts can modify or restructure an existing commercial mortgage loan by lowering the interest rate, reduce or eliminate late fees, reset balloon payments or extend terms. Commercial loan workouts can also defer payments, allow temporary, interest-only payments to help borrowers to catch up and increase cash flow.

As indicated in previous articles on this website, many industry experts predict a wave of commercial mortgage defaults in the next few years, due to declining property values, higher vacancies and tighter lender guidelines. Unable to refinance into newer loan terms, many commercial borrowers will face large balloon payments, which will eventually lead to loan defaults.

In conclusion, commercial loan workouts could possibly save banks from losses by turning non-performing loans back into highly prized, performing commercial mortgage loans.

For more information on commercial loan workouts, please visit:
Loan Workout
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Tagged as: commercial, loan, workout, default, modification, foreclosure, mortgage, non, performing, notes, puchaser, real, estate, distressed, restructure, bank, servicer, speacial


Understanding Forensic Loan Audits

Thursday, June 17

As part a commercial loan workout, a forensic loan audit may be performed to uncover any errors when the commercial mortgage was originally issued.

During the commercial real estate boom of early to mid 2000's, a fair amount of mortgage loans had inaccuracies and federal violations. Since a large number of commercial borrowers are defaulting on their loans, commercial forensic loan audits in addition to a commercial loan workout can help uncover any errors in the loan documents and misleading contract language. Federal legislation was also passed to protect consumers from vague or unclear information on the cost of obtaining a mortgage loan.

TILA, or the "Truth In Lending Act" give borrowers a standard way of determining the cost and terms of a mortgage loan. Borrowers now can make educated decisions on whether or not to proceed with the loan and shop around for alternatives. REPSA, or the "Real Estate Settlement Procedures Act" was passed to spell out all charges and fees associated with real estate transactions and to prevent lenders from giving referral fees to closing agents or settlement providers. Forensic loan audits for commercial mortgages if needed, should uncover any federal violations of the law.

Forensic loan audits can be a very valuable tool when errors or violations are discovered to obtain a commercial loan workout. Commercial loan workouts once approved by the lender can reduce the interest rate, waive late fees, arrange repayment plans and/or extend loan terms.

For more information, please go to: http://www.MyCommercialLoanWorkout.com

Tagged as: commercial, loan, workout, modification, default, bank, foreclosure, debt, restructure, forensic, audit


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Desmond Primus

The National Groups
Foreclosure Specialist
Glastonbury, Connecticut


Website: http://www.thenationalgroups.com
Phone: 860-368-3543
Fax: 866-528-7744

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