Specialized Program Saving Banks and Commercial Property Owners From Foreclosures And Financial Disaster

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With a massive number of commercial mortgages due to mature by September 2012, there will be a huge percentage of those properties moving into foreclosure even though many are not currently in financial trouble. A new regulation is forcing banks to reexamine those mortgages and well over 80% of them will not qualify for refinancing due to some new guidelines that change the way those properties are valued (Source: Huffington Post). But there is a specialized program being offered by AccuPro Financial that is giving a life-line to both commercial property owners and banks across the U.S.

This is the only program that I know of that offers a real lifesaving solution to people on both sides of the equation and we have had a huge success rate with it.

A new rule recently handed down to banks by the Financial Accounting Standards Board (Source: FASB.org) is forcing them to change the way that loans are refinanced and will result in over $2 Trillion in US commercial properties facing foreclosure. This new rule, which went into effect in June 2011, means that current loans that do not conform to the new valuation guidelines for a conventional loan will not be refinanced and will instead be classified as troubled assets (Source: Huffington Post). Because so many properties have declined dramatically in value over the last 4 years, they are not qualifying for refinancing and the banks are facing a huge wave of costly foreclosures if they cannot get those loans off of their books (Source: guardian.co.uk).

Not only does this new rule spell trouble for the banks themselves, but for commercial property owners as well (Source: CoStar Group). There was a recent scenario with a retail property that had a loan balance of $10.5 million dollars but the current appraised value was $5.2 million. The owner had never missed a payment, but that property did not qualify for refinancing because more was owed than the property is now worth in the current market. "And this is the scenario that will be playing out in banks all over the country due to this new guideline” says Brigid Scott, a spokeswoman for AccuPro Financial.

AccuPro Financial’s solution to this rapidly growing commercial mortgage problem is a commercial loan workout program called the Discounted Note Workout. With this program, one of their representatives goes in and negotiates directly with the banks to buy those distressed notes at a discounted but fair rate. This gets those now distressed loans off of the banks’ books saving them from the costs of foreclosure while giving the property owner a fairly large reduction on their principal and a better financial position. The result is a win-win situation that gives the bank some much needed financial relief while the property owner gets financial relief as well. “This is the only program that I know of that offers a real lifesaving solution to people on both sides of the equation and we have had a huge success rate with it” says Scott.

While the Discounted Note Workout program is available to both commercial property owners as well as to banks, it is the property owners that encouraged to be especially proactive. Not only can this program help keep them out of an unfortunate mortgage situation or even foreclosure, but they could also find themselves owning their property at today’s market value rather than the value of 5 years ago. “We encourage property owners, banks, and asset managers to talk with us about this program because it can be absolutely invaluable to all of them” says Scott.

About AccuPro Financial
Based out of Mississippi, AccuPro Financial has been meeting the financial needs of U.S. commercial businesses for several years. Their discounted note workout is available to banks and commercial properties across the U.S. Learn more by visiting their website at http://www.accuprofinancial.com/loan-types/commercial-loan-workout or by calling 877-683-6006.

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Martha Winter

Brigid Scott
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