The ABCs of Commercial Loan ModificationBefore we jump into the meat of this article, let me give you a quick and dirty definition of a commercial loan modification.Definition: A modification to terms of a commercial loan that does not include refinancing. Modification occurs on a case-by-case basis when the borrower is unable to make loan payments due to financial distress.What Does This Mean For The Investor?Commercial loan modification can be an excellent option for the struggling real estate … [Read more...]
What Is a Commercial Loan Modification?
April 28, 2012 By Leave a Comment
What Is a Commercial Loan Modification?A commercial loan modification, also called a Workout Loan, may be considered if a business is in financial distress and unable to pay back a loan.In order to understand what Commercial Loan Modification means, let’s break down each word and define it:Commercial: Related to business. We are only concerned with loans taken out for business purposes. This does not include an individual loan for something like your car, home mortgage or an educational … [Read more...]
Real Estate News by the Numbers: Week of February 11 – February 17
February 18, 2012 By Leave a Comment
Real Estate News by the Numbers: Week of February 11 – February 17A quick rundown of the important real estate news from the week of February 11 – February 17, by the numbers:1.5% – Increase in housing starts in January from December. The annualized rate of 699,000 housing starts is almost up 10% from the previous year.95% – Amount of borrowers who refinanced in the 4th quarter of 2011 who received fixed-rate loans. Borrowers are also choosing shorter loan terms. 43% refinancing out of … [Read more...]
How Do Syndicators Make Money?
January 25, 2012 By Leave a Comment
How Do Syndicators Make Money?The syndicator can be compensated at the end in two different ways: 1) by receiving a share of the profits when the property is sold; or 2) by receiving some of the refinancing proceeds.Let’s consider some examples:You purchase a well-located run-down house in foreclosure for $95,000. Using an investor’s money, you make a down payment [...] Read the full post here... … [Read more...]
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Denial Blocks Real Estate Recovery
Denial Blocks Real Estate RecoveryForeclosure, Bankruptcy vs Home Affordable Refinancing Program ( HARP).Kevin is not giving up without a fight. I know this because those words are written on a piece of paper taped to his front door. NOT GIVING UP WITHOUT A FIGHT! His house is scheduled to go to a foreclosure auction today.Kevin bought his home on July 8th, 2003 for $270,800. The real estate market here in Phoenix was stable at the time. The housing explosion was about 18 months away. … [Read more...]