As the country prepares for a potential economic downturn, lenders with loans secured by commercial real estate may wonder what they should do if they find themselves faced with the need to enact a foreclosure on their investment. The truth of the matter is that both residential and commercial foreclosures in 2023 have been on the incline.
If you are a lender needing to enact a commercial foreclosure to protect your assets, we understand the overwhelm you may be facing. The team at Total Lender Solutions has been the leading expert of real estate ownership transactions in seven states for over fifteen years. Our clients often come to us with questions about the current commercial real estate climate.
Read below to learn what the most common industries facing foreclosure are as the real estate industry enters Q4.
Related Article: The Impact of Commercial Foreclosure on the Local Economy
Industries Commonly Facing Commercial Foreclosure in 2023
Foreclosures both residential and commercial have been rising steadily throughout 2023. The first six months of 2023 saw approximately 185,000 filings for foreclosure nationwide, while 2022 saw approximately 165,000 filings overall. States like California and Texas have seen the greatest number of foreclosure filings.
Some industries facing specific troubles include hospitality and office spaces. The hospitality industry faced an historic wave of foreclosures at the onset of the COVID-19 pandemic. In 2023, hotels have not yet reached 2019 levels of occupancy, meaning that many hotels are still struggling to meet rents.
Office spaces, meanwhile, are foreclosing at record numbers with about $1.2 Trillion in outstanding debt to banks and lenders. 10,000 office spaces were foreclosed in the first quarter of 2023, while vacancies sit at approximately 18%.
Related Article: The Lingering Impact of COVID-19 on Commercial Real Estate
Despite these industry numbers, Total Lender Solutions’ CEO Randy Newman advises clients that conditions may not be as doom and gloom as they seem. Foreclosures are rising, but they are going at a steady pace, rather than spiking, which might be a cause for concern.
“The first thing we tell our clients that come to us is to not panic. Foreclosure levels are still not nearly at those of 08-09. However, if you do find yourself at a crossroads and need to begin the foreclosure process, contact an experienced professional like Total Lender Solutions to guide you through the process without bringing too much interruption to your day-to-day operations.”
– Randy Newman, CEO, Total Lender Solutions
How a Foreclosure Company Can Help
The team at Total Lender Solutions can offer specially tailored solutions for your foreclosure, ensuring that your process is completed in a timely manner and in full compliance with local and national laws. Hiring a foreclosure company like Total Lender Solutions means that you will have a professional partner working side by side with your team that can address any of your concerns and solve any problems that may arise.
Foreclosure can be an overwhelming challenge to take on, but a reputable foreclosure company, like Total Lender Solutions, can make a significant difference for your business. Our expertise and experience can create a personalized solution for you.
If you’re currently dealing with foreclosure, don’t hesitate to contact our team by filling out our contact form.
