Barb2775@charter.net
Guest
|
 Posted: Sat Oct 31, 2009 2:22 am Post subject: Commercial Property |
|
|
My father is 90 years old now. When he purchased commercial property, he paid $275,000 for it. He bought the property for my business, and I pay him rent to cover the mortgage. But times are tight, and no longer need the expense of a 2240 sq. ft. office building. I have had to lay off my workers. We asked for payoff on the loan, and it is $158,000. The property will not sell for even $120,000. The office building has been on the market for over a year. We have tried to sell, lease/purchase, rentals--nothing works. The loan is at 7% interest. The FDIC told us to make a proposal to them, because our bank folded. The new bank bought the assets, but not the loans. So now FDIC is now the mortgage holder. We would like for the FDIC to consider the property paid in full. They can't do anything with it, and neither can we. Realistically, I don't think that they will do that, and we are working on our loan modification. My thought is that we pay interest only for the next 4 years, and continue to try to sell the property. Any suggestions?
_________________
Need help choosing the right loan? Get free consultation from community lenders/consultant |
|
 savior70
Joined: 25 Mar 2009
Posts: 1422
Location: Florida
168.75 Dollars($)
|
| Posted: Mon Nov 02, 2009 5:09 am Post subject: |
|
|
Hi,
If the property value has gone down, it will be difficult for you to sell the property. You can pay interest only on the loan and try to sell the property. But there's no guarantee that the property will sell in the next few years. If the economic situation changes for good, you can expect to sell the property and pay off the mortgage balance. But if things do not change much, it will not be worth your while to keep paying on the mortgage for the next 4 years.
Have tried any of the loss mitigation options? Loan modification is a good option, in case you want to keep paying towards the mortgage and retain the property. If you do not want to keep the property, you can go for a deed in lieu. The property has been on the market for 1 year without any success. There is a chance that the lender will accept the deed in lieu offer and take over the property from you to sell it off. |
|
