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Loans to Halt Commercial Real Estate Foreclosure

Foreclosure  You would have to live under a rock to be unaware of the foreclosure rates on home mortgages lately. While homeowners have been offered new ways to obtain restructured loans to avoid or inhibit any foreclosure proceedings, contractors with subdivision properties remain on the hook for their outstanding loans. And, sadly, these are the loans that mortgage companies are now going after to recoup their investments.

For contractors and other investors who are facing foreclosure on commercial holdings, a private lender may be the best way to resolve the problem and halt the process before it goes any further. Getting a commercial real estate loan in Minnesota for properties that are facing court filings is similar to knocking on the door of a private money lender.

Why Use a Private Lender

If you are facing foreclosure on a commercial property, you should consider a private money option because:

  • You need money fast
  • Your bank won’t loan money on property already slated for foreclosure
  • Your banker says you’re over-leveraged
  • The mortgage holder wants payment in full rather than payments in arrears
  • You can only get half of the money to pay off the mortgage from family members

Private lenders know that these are the reasons that commercial properties go into foreclosure in the first place. Fortunately, they also know that most commercial real estate loans in St. Paul result in turnarounds if short-term loans are made available.

What Asset-Based Lenders Look for

Unlike conventional lenders, asset-based lenders look at the properties value first and your ability to repay second. While both are given weight, the former is weighed much heavier than the latter when private money makes the decision.

In foreclosure situations, commercial real estate loans consider the amount of equity you would lose in a foreclosing. Often, only an emergency loan is needed to avert the legal proceedings in order that the owners re-establish their business model and become whole. But without private money, they face losing all they have worked for already and any future profits that lie ahead.

Are You in Foreclosure?

  • Do you need a short-term loan for 6 – 24 months to get your financial situation back on track?
  • Will losing your property result in huge losses of equity, as well?
  • Is your commercial property worth more than your current loans plus the amount needed for an emergency loan?

These are the general questions that a private money lender considers when determining whether or not to lend you money.

For specific information about our ability to loan you money, the period of our short-term loans on commercial real estate loans in Minnesota and to ask questions that you feel are relevant, click on the “Get More Info” icon in the sidebar and we will contact you within 24-hours.

We are able to loan as little as $50,000 up to as much as $3,000,000 on commercial property situations.

Call us for a private and confidential appointment to discuss your particular needs. Tell us your story. We’re here for you. We’re here to help.

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