Retail buildings are a category of commercial real estate property with which everyone is familiar. These properties include buildings that are frequented by customers and include retail stores and restaurants. In economic downturns, money lenders may find that they see an increase in default borrowers. Once lenders have exhausted all of their alternative resolution options, lenders benefit from enacting their retail property foreclosure soon, rather than delaying indefinitely. For lenders that fear the foreclosure process, a foreclosure service like Total Lenders Solutions.
How Do Retail Commercial Property Foreclosures Work?
In states that allow lenders to foreclose nonjudicially, retail foreclosures follow most of the same process that any commercial real estate property follows. Most nonjudicial states will have a notice of default, or pre-foreclosure stage, a notice of sale stage, a sale stage, and various post-sale requirements. The timeline and notice requirements vary from state to state, and it is critical to have a foreclosure expert at your side to navigate these unique differences.
In the pre-foreclosure stage, lenders send borrowers notices according to each state’s compliance laws. This typically requires posting a notice in an inconspicuous location on the property itself, with some states requiring lenders to serve notices in person. Borrowers have this time period to cure their default before the property transitions into the notice of sale stage.
The notice of sale stage begins after the specified waiting period has passed and the correct sequence of notices has been issued. Many states require this notice to be made public in a county publication. The document lists the exact date, time and location of the sale. In most nonjudicial states, borrowers still have time to cure their default or negotiate some alternative resolution option. However, in many states, there is a deadline to cure the default that typically falls between several days to a few weeks before the scheduled sale date. If no resolution is reached, the property is auctioned and sold to the highest bidder during the sale date.
How is a Retail Property Foreclosure Different?
Retail properties in default can be frustrating for lenders because, typically, it may be difficult to reach borrowers and have any kind of communication. For those borrowers that are in touch with lenders, borrowers may pull a lender’s chain and come up with excuses for not paying for months or years before a lender comes around to finally foreclose on a property.
Retail properties, especially restaurants, may have junior liens on things integral to the property, like industrial kitchen equipment or interior furniture. A partner in the foreclosure process can help lenders navigate junior liens when foreclosing the larger lien.
Land Foreclosure Solutions for Lenders
The commercial foreclosure process can seem imposing, especially for small to medium lenders enacting their first foreclosure. However, with the right partner in the foreclosure process, lenders can move forward with their customers without the anxiety of defaulting borrowers.
Total Lender Solutions advocates for lenders looking to maximize recoveries on defaulted loans. Our team is made up of highly experienced real estate professionals and legal experts. From vacant lands to foreclosing on hotels, our solutions are comprehensive and seamless, from pre-foreclosure and notice of default to the final sale phase. Contact us today.
