Lenders who are faced with a non-judicial commercial foreclosure understand that they are facing a long road ahead. Foreclosures can be time-consuming, complicated, and expensive. If you are already looking ahead to the other side, a partner like Total Lender Solutions can help lenders with the commercial foreclosure process from start to finish.
With over fifteen years of experience working with commercial real estate, we have worked with many commercial real estate lenders, helping them to complete their foreclosures and get the best return on their recovery. While every lender’s post-foreclosure will look different, below are a few things that could happen once the sale is complete.
Deficiency Judgment
More than likely, when lenders recover their assets through a nonjudicial foreclosure, they may have a deficiency between the sales price of the real estate and the amount owed to them by the borrower. This is typically because, in many states, laws dictate that lenders must go after the property alone and cannot pursue other collateral.
There are states in which a lender may pursue a deficiency judgment in an HOA foreclosure or extenuating circumstances. In order to pursue one, lenders may have to bring their concerns before a court. Lenders should evaluate if they have the time and resources to pursue a deficiency judgment before beginning the process.
Redemption
Some states allow for borrowers to redeem the property after it has been foreclosed. If the borrower, within the allowed time frame, pays the entirety of the loan amount, plus any interest, additional late fees, lawyer fees, and additional costs, they may redeem the property, and ownership reverts back to the borrower.
State Resources for Lenders on Commercial Foreclosure
Because the post-foreclosure process varies from state to state, lenders must partner with a foreclosure expert that is versed in the compliance laws of the state where their property is located. Total Lenders Solutions has expertise in:
Keep Your Team Educated About Foreclosure Law
At Total Lender Solutions, we help lenders achieve optimal results in recovering defaulted loans. With over 15 years of industry experience, our team of skilled real estate professionals and legal experts is committed to simplifying complex processes and delivering clear resolutions for both institutional and private lenders.
Contact Total Lender Solutions to begin your effective loan recovery.
