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5FT8 Real Es…,  in Massachusetts

What would be the benefit to shorting a commercial property? If it's in an LLC and not someone's personal name, why would someone bother to

Asked by 5FT8 Real Estate, Massachusetts Mon Sep 7, 2009

do a I know for a homeowner their are benefits to doing a short sale over foreclosure, but what about a commercial building? Most likely a commercial building is in an LLC or other business entity and not in someones personal name so their personal credit is not affected. So, what would be a benefit for a commercial building to entertain the idea of doing a short sale vs. a foreclosure?

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Ken Lambert’s answer
Hello there- If you want to review more of the details here, I'd be happy to discuss.
I do know many other people that are very savvy to this. Are you in the NH Real Estate Investor's Association? I am, and there are some great resources there, etc.
Thanks, and good luck,

Ken L.
0 votes Thank Flag Link Wed Sep 23, 2009
There have been some forclosures in my area under a LLC. Most commercial lenders require a personal guarantee when making a loan to a LLC. I have seen recently some personal properties being forclosed on for deficiency judgements. A LLC is not a big shield to keep everything away from you and a lot of the time a person runs a property that is under a LLC like a personally owned property and breaks the corporate vail.
Web Reference: http://www.Find1Home.com
0 votes Thank Flag Link Tue Sep 8, 2009
You do not know if the corporation has had to sign personally. As well what type of corporation owns it, how they filed with teh state and if that corporation owns other properties can factor in. As well if teh corporation wants to keep to business and not after to start a new corporation. There are way too many variables but i can tell you the advantage of a business or corporation doing the short sale is teh same as personal. To save some sort of credit rating, short sale is less damaging than a foreclosure and with a short sale they can negotiate the amount that they are short to being able to put off the amount to a later date to completely writing it off. In a foreclosure the bank is coming back for that money if they have any other assets. I hope this helps.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Mon Sep 7, 2009
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