In California, most commercial real estate foreclosures are non-judicial. Though some lenders enacting their first-ever foreclosure may be attracted to the idea of involving the court in order to receive a deficiency, they often find that opting for a non-judicial foreclosure results in a much simpler process for everyone involved and can sometimes include a deficiency anyway.
Non-Judicial Commercial Foreclosure Benefits
Here are the Benefits of Opting For A Non-Judicial Commercial Real Estate Foreclosure in California
Easier
To put it simply, non-judicial foreclosures are more common because they are simpler, although still not “easy” for the untrained professional to navigate without the right support. Processing firms can help ensure that your business receives the full benefits of foreclosing on a property where there were missed payments.
Faster
If there are no delays, foreclosing on a commercial property without going to court can take as short as a few months. This allows the lender to proceed with the sale as long as the right sequence of notices has been issued. Processing firms can help issue notices on time and file paperwork so that the process is not delayed by clerical errors.
Cheaper
Non-judicial foreclosures are less expensive to enact, as there is no need to pay excessive attorney and court fees. Because the price of enacting a judicial foreclosure may exceed the value of the potential deficiency, nonjudicial foreclosure is the more popular route.
The Importance of Compliance and Alternative Resolution
While lenders naturally prefer the quickest and easiest route to protecting their assets, compliance laws are enforced to ensure that all parties are protected. Any violation of these requirements gives the lender a potential ground to invalidate the sale of the property.
If a lender is considering a foreclosure as the last possible resort, they might first consider methods of alternative resolution. Lenders can help borrowers by refinancing, issuing temporary stays, or making adjustments to the loan before opting for foreclosure.
How a Processing Firm Can Help
Stumbling through a foreclosure without a firm’s guidance often leads to compliance oversights and/or missed deadlines, all of which ultimately makes it more difficult for lenders to secure their assets. Whether a lender opts for a one-time use or continued partnership, having a knowledgeable foreclosure expert who knows California guidelines is an invaluable tool to keep teams compliant and cleared from liability.
Processing firms take care of paperwork and do the heavy lifting, working to protect the lender’s assets. Additionally, some firms like Total Lender Solutions offer continued education and audits to serve as a continued resource for lenders.
Keep Your Team Educated About Foreclosure Law
At Total Lender Solutions, we advocate for lenders looking to maximize recoveries on defaulted loans. For over 15 years, our team of highly experienced real estate professionals and legal experts has transformed complicated processes into clear resolutions for institutional and private lenders.
We work as a vigorous extension of your team to provide comprehensive solutions and seamless communication, from pre-foreclosure and notice of default to the final sale phase. Our dedication and persistence when it comes to the foreclosure process ensures that our clients feel confident in reaching a successful outcome. Contact us today.
