Lenders enacting a foreclosure for the first time may consider processing the foreclosure on their own to save money. However, a commercial foreclosure is a complicated process, and lenders could suffer further losses if they make any mistakes. For that reason, it might be better for lenders to enlist a commercial foreclosure service company to help them.
What is a Commercial Foreclosure Service?
A commercial foreclosure service manages every aspect of a commercial property foreclosure, from the early stages when a notice of default (NOD) is issued, to the final stages when a foreclosure sale is planned – if it reaches that far.
Using a foreclosure service can be roughly equated to hiring a tax professional to file your tax return; you’re going to trust a certified expert to handle things for you so you can save time and money.
Most of the time, these services are offered by foreclosure firms, like Total Lender Solutions, which have a specialized team of attorneys, real estate experts, and administrative staff on hand to give lenders thorough support and resources.
Benefits of Using a Commercial Foreclosure Service
Commercial foreclosure services are beneficial for 3 reasons:
- They can solve complicated problems for you
- They make sure you’re complying with legal requirements and regulations
- They can efficiently handle the foreclosure process workload
Let’s illustrate each of these benefits in a little more detail.
1. Problem Solving
Foreclosures are complex, and lenders enacting their very first foreclosure might find themselves turned around trying to navigate the process.
An endless number of factors may complicate a foreclosure. Here are just a few things that could throw lenders off:
- The Property Has Tenants: There are more legal processes to navigate if the defaulted property has tenants using it, whether the tenants are residents or businesses.
- Loan Secured by Multiple Properties: Loans secured by multiple properties are more difficult to manage than a loan with just a single property as collateral.
- Legal Disparities Between States: States may have different laws regulating the foreclosure process, and lenders also need to account for federal regulations.
- There’s No Power of Sale Clause: If the deed of trust has no power of sale clause, the lender will have to pursue a judicial foreclosure, which involves filing a lawsuit and going to court. This can be an extremely complex and drawn-out process.
- You Can’t Reach the Borrower: The borrower won’t respond to the lender, creating more obstacles for the lender to hurdle as they pursue foreclosure.
Lenders can navigate the process much easier by using a foreclosure service, which will be able to create unique solutions to solve specific problems for each lender and each property. Our problem-solving skills ensure that your team is never left in the dark about the status of their foreclosure.
2. Compliance
Compliance is the most important aspect of a commercial foreclosure. If there are any discrepancies in the foreclosure process on the part of the lender, borrowers can use those faulty practices as evidence in a court claim. Lawsuits can be devastating to borrowers, especially if they must forgo a property sale.
Furthermore, there are different laws regulating the foreclosure process in each state. If a lender has investments in multiple states, it can be difficult to keep track of which rules and regulations are valid for any particular foreclosure.
Foreclosure services are industry leaders in foreclosure compliance, with insight and experience in the nuances of the process. A firm like Total Lender Solutions will keep your team educated on lending and foreclosure laws so you don’t make any costly mistakes that could result in further losses.
Related Post: 3 Challenging Aspects of a Business Foreclosure
3. Efficiency
Commercial foreclosures are extremely time-consuming. There’s paperwork to file, laws to review, communications to be made, and all sorts of nitty-gritty administrative work that devour hours of a lender’s time.
Individual lenders may not have enough time to handle foreclosure processing all by themselves. Institutional lenders may have to reassign staff members to handle the workload, which can significantly disrupt their productivity.
Foreclosure firms, like Total Lender Solutions, work hand-in-hand with lenders so they don’t have to shift focus away from their day-to-day jobs. They often have an experienced staff of foreclosure experts who will do all the tedious work that lenders simply don’t have time for, allowing the lender to give more time and attention to their other investment properties or areas of business.
The Premiere Foreclosure Service for California, Arizona, Nevada, Missouri, Texas, Washington, and Oregon.
Lenders can rely on Total Lenders Solutions to provide premiere foreclosure services for their team. 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 service process ensures that our clients feel confident in reaching a successful outcome. Contact us today.
