The Uniform Commercial Code (UCC) addresses interstate commercial laws across the United States. The UCC is a comprehensive set of laws designed to standardize sales and commercial transactions. It is not uncommon for commercial real estate and issues regarding the Uniform Commercial Code to go hand-in-hand. If you are a lender who manages loans secured by commercial real estate, you have likely come across UCC filings in your line of business.
While real estate foreclosures and UCC sales are different processes, both require an experienced foreclosure consultant to complete the process quickly and within state compliance. Total Lender Solutions has helped hundreds of lenders in seven states protect their assets through foreclosure and UCC sales.
Learn more about UCC filings and sales below.
What Is A UCC Filing?
A UCC-1 filing, also called a UCC filing, refers to the UCC-1 Financing Statement. Similar to how a mortgage or deed of trust encumbers real property, the UCC-1 filing indicates that the lender has a lien on the business’s inventory. Popular inventory to secure with a UCC-1 filing are fixtures, kitchen equipment, or furnishings.
To file a financing statement, a form is filed by a creditor, giving notice that the lender has an interest in certain personal property of the borrower. The property serves as collateral until the debt is paid off. If the loan goes into default and is not resolved, the lender can hold a public sale to recoup some of the losses, similar to a real estate foreclosure. This is known as a UCC-9 Sale.
How a Foreclosure Expert Can Help You With a UCC-9 Sale
It is not uncommon for real estate foreclosures and UCC-9 sales to go hand-in-hand, especially if the borrower is defaulting on multiple loans. The process of completing a UCC-9 sale is just as complex as a commercial foreclosure and has its own set of complex laws. UCC-9 sales require the lender to issue a reasonable notice to the borrower before initiating the sale. Individual state laws define what constitutes reasonable notice.
One of the most difficult aspects of UCC-9 sales is the issue of commercial reasonableness. In order to complete the sale, the lender must demonstrate that the sale is a reasonable solution to address the default. This standard is purposefully loosely defined and based on state standards. A foreclosure expert is often the only way a lender can navigate this minefield.
The team at Total Lender Solutions have helped hundreds of lenders complete commercial real estate non-judicial foreclosures and UCC-9 sales across seven states for over fifteen years.
Top Foreclosure Company for California, Texas, Missouri, Oregon, Nevada, Washington, and Arizona
Hiring 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, guiding you to a favorable outcome.
If you’re currently dealing with foreclosure, don’t hesitate to contact our team by filling out our contact form.
