Alternatives to Foreclosure – Part 1 of 5

Even if the government tells you the recession is over, many of you are still feeling it. With over 14% unemployment in Miami Dade County and over 12% statewide, you are not alone. These harsh statistics are well above national averages and they also do not account for underemployment (people who simply stopped applying for unemployment benefits) nor does it account for people who have had their hours and pay checks reduced. If you are a small business owner, you may be feeling it the most, and if you happen to own commercial property that you use for your business, it may be hard to pay your mortgage, property taxes and insurance, while also keeping up with the overhead of your business. If you are an investor in commercial property, small businesses may be your tenants, and your vacancy may have increased significantl and you are likely receiving 1/3 to 1/2 less from your current rent roll.  As a result your investment property may have a negative cash flow. In either case, whether a small business owner or an investor you may be forced to stop making payments, and in some cases your lender may have already taken action.

These are uncharted waters for many, because a recession typically lasts for 2 to 4 years out of a 15 year economic cycle, in which case the majority of the population is trained to handle the boom cycle of the economy. So it is helpful to have someone who understands the process and knows your options, and can navigate these uncharted waters to help mitigate your loss. International Port of Calls around the world require that ships be handled by local tugboat captains who know the local waters and tides, and who understand where the shallows and eddies exist, so that they can provide a safe berth. Likewise in these difficult times, it is best to have a professional who has relationships with your lender and who understands their concerns, their culture, their processes and most importantly their language. Who better to do this than your trusted commercial real estate advisor who knows your property, knows the market, knows additional lending sources, and knows buyers and tenants. A Commercial Real Estate Advisor can act as a third-party communicator to all the various entities involved, which is something your attorney can not do.

Keep in mind that not all Advisors are equal, so be sure to use someone who is currently dealing with banks and assisting their customers in the various stages of foreclosure. Sperry Van Ness is a national platform that is built to service commercial real estate at the highest possible levels. Our Asset Recovery Team is thoroughly versed in the various options that an individual has to mitigate loss.  We can consult with you to solve your commercial real estate needs, so that your business can stay on track and continue to operate. While we are not lawyers, we know the best small-business lawyers and other vendors who are key to forming a successful team to implement your strategy. The longer you wait, the less options you have, and the less time you have to exercise those options.  Call our office now and receive a complimentary valuation of your property and your situation. We can connect you with the right professionals, or if you already have your team in place, we can compliment them with the additional tools and skill sets we bring to the table.   Call Matt at 305-490-6526 and find out more about how you can improve your situation, or if nothing else to talk about the market and the economy, and what is in store for Commercial Real Estate in 2011. 

Stay Tuned for Part 2…