Home Selling in Los Angeles>Question Details

Sally, Home Seller in Los Angeles, CA

Does anyone have experience with Commercial Short Sales? Can the bank go after other assets in addition to my commercial building?

Asked by Sally, Los Angeles, CA Wed Sep 21, 2011

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Commercial short sales are different from residential short sales. Loans are structured differently and have clauses in them that the borrower guarantees the loan should the borrower default. Best bet is to go back and read through the loan agreement or consult a real estate attorney.
0 votes Thank Flag Link Tue Apr 17, 2012
Dear Sally,
I invite you to pose this question on another forum with Commercial Brokers on loopnet.com
0 votes Thank Flag Link Tue Feb 28, 2012
Commercial and residential short-sales are 2 entirely different beasts. Although they're somewhat related (the seller is selling the property for less than what's owed), they differ. Keep in mind that if you personally guaranteed your loan, then your lender certainly could go after other assets.

You might want to look into doing a commercial loan workout.

Please feel free to contact me.
0 votes Thank Flag Link Thu Sep 22, 2011
I have completed a handful of commercial short sales, and have not had the banks inquire about the assets of the borrower. However, I suppose all banks are different. I would also look into the new statutes and see if they protect in short sales on commercial buildings.
0 votes Thank Flag Link Thu Sep 22, 2011
Sally,

This would depend on whom your lender is. Most Life Insurance Companies, Pension Funds and REITS are non-recourse. Check you loan documents to find out.

Deborah,

In CA all residential is non-recourse. New ruling about two months ago.

Happy funding, Rudi
Web Reference: http://www.umboc.com
0 votes Thank Flag Link Thu Sep 22, 2011
California has protections in place for assets in a short sale. Commercial short sales are becoming more common, as are residential income short sales. However, debts forgiven on second homes or income rental property do not qualify for exemption under the Debt Relief Act. Debt cancellations on loans for commercial property, car loans or credit card debts do not qualify either. Cancellation of second mortgages and refinances taken out in excess of the amount owed at the time of application do not qualify for tax-exempt status in most cases. Only the amount of the debt forgiven which homeowners used specifically for home improvements is tax-exempt.
The State of California also exempts homeowners from state taxes owed on mortgage debt relief. It passed the Conformity Bill of 2010, which extends similar exemptions to citizens of California for state income tax.
That's the general answer. Now Sally, what about your specific situation? The final answer is, it depends.
My recommendation is that we talk about your specific situation, and I'll be happy to point you in the right direction. I am certified in all aspects of distressed property sales and head up the short sale department with Coldwell Banker. You may contact me below.
Deborah Bremner
The Bremner Group at Coldwell Banker
REALTOR, 00588885, ABR, CDPE, eAgent, CSP, SFR, HRC, CRE
(O) 310-571-1364 DIRECT
(D) (310) 800-2954
http://www.thebremnergroup.com
Accredited Buyer Representative|Certified Distressed Property Expert |Pre-Foreclosure Specialist Certified|Investment Property Specialist Certified
0 votes Thank Flag Link Thu Sep 22, 2011
Hello. I specialize in short sales and head up our short sale dept with Coldwell Banker. I am highly experienced and can definitely assist you. Plus I am local, also in Los Angeles and can meet with you in person and go over details. Please, give me a call, I can elp relieve you of some of this stress. Thank you.
0 votes Thank Flag Link Wed Sep 21, 2011
My partner has owned his Commercial brokerage for about 30yrs, his wife is also a commercial appraiser with 30yrs exp, my team has closed over 500 short sales. We can help you with your commercial property short sale.

We work with the bank to get them to agree to release you of any future deficiency judgments & no they can't go after other properties you own. The Mortgage Debt Forgiveness act is not on your side for short selling an investment property but you can still work with you CPA to try to prove insolvency if you truly are & thus not pay to the IRS "income" on the negative balance between what you owe & what the bank nets at the short sale closing.

Please email me directly so we can talk about this some more, I don't look back on this same Trulia thread for answers posted after mine.

EmilyKnell1@yahoo.com
562-430-3053 c
Realtor Since 1996
Main Street Realtors
Partnered w/ Properties West Investment Real Estate
0 votes Thank Flag Link Wed Sep 21, 2011
Not in CA. Call me. We do them all time. We completed over 190 short sales in the past 12 months.

Lee Wasser. 877 253 0104 x 606
Lwasser@EqEmail.com
0 votes Thank Flag Link Wed Sep 21, 2011
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