Thread: Commercial Short Sale

Time frame may depend on your developer as far as I know.

Originally Posted by aleander

I am a real estate broker in Chicago, IL. Can anyone provide any sound advice on successfully negotiating a short sale on a commercial property. What types of challanges should I be ready for that do not occur in residential short sales? Is an attorney required? What types of discounts are banks usually willing to give on such a transaction? What type of time frame should myself and the client be prepared for? Any advice is greatly appreciated!

Banks are beginning to take commercial loans into account in the short sale conversation. The process will take some time. The lender will certainly need an appraisal to begin any serious conversation.

Patience patience patience!

Be ready in your white lies and alibis for you to deal with commercial short sale. Make your script that your buyer can impress. Do a situation that your buyer can buy immediately the property.

Seriously? Your thought is that you "lie" to a bank?

NOT a good idea!

A Commercial short sale require arrangement with the bank, are not automatic approved and the property owner need to provide financial information proving they are unable to make the mortgage payment as well as suggested sale prices.

Sources predict the fallout from commercial property loan defaults will be much larger than the fallout from residential loan defaults. Whether this is true or not, the fact remains that the large number of commercial loans which come due in the next few years cannot be refinanced conventionally due to declines in real estate prices. These notes will either become loan modifications, or short sales, or the properties will become REOs.