There are four main ways a borrower can return a commercial property back to its lender when the borrower can no longer pay for the loan:
- Foreclosure – This is when the lender sells the property at the courthouse steps to the highest cash bidder.
- Trustee’s Sale – Similar to a foreclosure sale, this is when a lender sells the property by a public or private sale with a guaranty from a title company.
- Receivership – The lender hires an attorney or accountant to take over the commercial property and manage it for the lender and the borrower.
- Deed-in-Lieu-of-Foreclosure – This is when the borrower deeds the property back to the lender so the lender does not have to foreclose on the property.
If you are having mortgage trouble or want to discuss your loan’s options, contact our office at 816-524-4949 or visit our website at www.Hoorfarlaw.com.