Press Release: MBA Commercial Offers Short Sale Solutions for Distressed Commercial Properties to Avoid Foreclosure

Commercial property owners can avoid foreclosure by selling their property using a short sale. MBA Commercial has cash buyers available to relieve commercial real estate owners of unserviceable debt. Owners can save their credit by participating in a short sale versus a foreclosure.

San Diego, CA (PRWEB) August 11, 2010.

MBA Commercial, one of San Diego’s premiere commercial real estate brokers, has cash buyers available to relieve commercial real estate owners of unserviceable debt. Owners can save their credit by participating in a short sale versus a foreclosure. Lenders net approximately 15-20% more through a short sale than a foreclosure, providing them with incentive to satisfy a larger portion of debt.

According to MBA Commercial CEO Brian Yui, "MBA Commercial’s access to ready buyers and ability to quickly and efficiently complete short sales on behalf of distressed property owners can significantly reduce damage to credit."

As MBA Commercial, Inc. predicted in late 2009, the wave of commercial foreclosures in San Diego is increasing. Researcher Real Capital Analytics Inc. reported that at the end of March 2010, San Diego County had 120 commercial loans in delinquent or default status, with a total value of $1.8 billion. According to Bloomberg L.P., in the first quarter of the year, 24.9% of San Diego’s commercial mortgage backed securities loans were on watch lists as lenders anticipated near-term delinquencies. In response to this growing need, MBA Commercial has established a short sale unit comprising experienced negotiators and closers dedicated to assisting commercial property holders dispose of their non-performing assets.

The model is similar to residential short sales: For commercial owners carrying debt higher than the current value of their properties, MBA Commercial can provide a cash buyer for fair market value. MBA then negotiates with the lender to release the owner’s note for the value of the sale, even though the owner owes more than the property is worth. The owner of the building avoids foreclosure and the bank avoids the legal fees and carrying cost associated with a foreclosure. The lender ultimately nets more money and avoids the risk of taking title to the property.

In addition to short sales, MBA Commercial specializes in short payoffs. The company has bridge financing lenders who are able to loan the majority of loan payoff amounts. Bridge financing costs are generally two to five points with interest rates ranging from 12-15% depending upon securitization and assumption of risk. Much like choosing a short sale over foreclosure, short payoffs can save a commercial property owner’s credit as well reducing or eliminating personal guarantees.

MBA Commercial has long anticipated the downturn in San Diego’s commercial property market and is now poised to assist owners in debt while generating profits for investors. Says Yui, "These individuals become free of the debt they can no longer service and the properties are restored to profitability, benefiting the local economy. It’s a win-win, something we don’t often see in the current market."

MBA Commercial, Inc. is a leader in San Diego commercial real estate. MBA Commercial offers a turn-key solution for property management, leasing, sales and financing. Its new Short Sale Division provides bridge loans as well as short sale opportunities for commercial property owners. For further information, please call 888-248-6222.

 

Press Release: New Year, New Commercial Foreclosures

San Diego Commercial Foreclosures on the rise in 2010.

San Diego, CA (PRWEB) February 1, 2010 -- As MBA Commercial, Inc. predicted in late 2009, the wave of REO commercial foreclosures in San Diego is increasing.

Commercial foreclosure numbers are up across the board. Fifty-Four commercial properties are currently bank-owned, another 72 San Diego commercial foreclosure properties are scheducled for auction in the next 90 days. In additon, 143 San Diego commercial properties are in the pre-foreclosure phase, up from 122 in December.

According to MBA Commercial CEO Brian Yui, "Banks that were delaying foreclosures in 2008-2009 to avoid major write downs simply cannot hold off any longer. As we told our clients, 2010 may be a lucrative year for investors seeking to capitalize on troubled commercial assets."

Included in the commercial foreclosures are 925 B Street and 1446 Front Street, both in downtown San Diego. 925 B Street, one of San Diego's largest foreclosed buildings, has six floors and 68,000 gross square feet, as well as two levels of subterranean parking. The Front Street property, which defaulted in October 2009, offers 14,978 square feet and is projected to be auctioned on February 16, 2010.

Yui adds, "We have been expecting this increase in foreclosed commercial real estate in San Diego. Yes, it's difficult for the banks, but good news for buyers who can take advantage of these distressed properties, which ultimately will stabilize San Diego's economy."

MBA Commercial, Inc. is a leader in San Diego commercial real estate. Its REO division provides management and disposition of bank-owned properties. MBA Commercial offers a turn-key solution for property management, leasing and sales, specializing in the maintenance and liquidation of San Diego commercial bank owned properties .

The REO Asset Management division is committed to providing the highest quality service. MBA Commercial can be reached at 888-248-6222.

 

Press Release: San Diego Commercial Foreclosures Are On The Rise

San Diego, CA (PRWEB) December 16, 2009 -- As the residential property market stabilizes, the wave of San Diego REO commercial foreclosures in San Diego is just beginning. Many banks have delayed foreclosure on troubled properties to avoid major write downs on their books that will affect their reserve requirements. However, while only a small number of commercial properties were foreclosed upon in the last two years, 2010 is poised to be a bumper year for investors seeking to capitalize on troubled commercial assets.