Commercial Short Sales

Commercial property owners can avoid foreclosure via a short sale.

MBA Commercial, one of San Diego’s premier 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, as well as netting lenders approximately 15-20% more, thus satisfying a larger portion of debt.

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 costs 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.