As a result of the loss in values banks are not re-writing / refinancing current loans coming due because the outstanding loan balances are greater than the current values or too close to the current value creating an ltv above 80%.. New development has all but completely stalled because there is no faith in any stabilization strategy or pro forma for same. With unemployment at 9.1% nation wide and as high as 14% in states like NV, MI and RI there is a legitimate fear to lend on property types and projects considered to be in the highest risk categories such as development, hotels and retail.

Appraisals done today are in some cases worthless within weeks because of the volatility in the market. Government loans for apartments and medical properties from (FHA, Fannie etc…) take longer with more fees and less profit for the participants. Private money is for the most part still sitting on a shelf in the tens of billions waiting for new rules and regulations in the recently passed Finance Reform Bill to be understood and planned for.

As of this writing (update August 2011) tens of thousands of mortgage brokers have left the industry (mostly on the residential side) and more will soon. Title reps are sitting on their hands waiting for deals and appraisers are under the gun with respect to new rules, regs and processes for gaining market share. In short, It’s a serious mess out there but take heart. The silver lining is that the debt restructuring side of the equation is alive and well. You can make the same money you made before doing commercial loans on the modification / workout side without wasting for a closing or the need for Appraisals, Environmental and legal fees added into the equation.

Your decision to let CommercialLeads.net help you enter the commercial loan modification market will provide you with a 2 – 3 year window of business helping others save their property, equity and jobs all while making a pretty good living. So lets dig in a bit and lay the foundation for how this process is done and what you need to know to begin.

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Commercialleads.net - Commercial Mortgage - Facts:
* Over 2 Trillion Dollars Outstanding / Coming Due by the end of 2012
* 9.1% Currently Delinquent (up .4% from last month 9/2010)
* Commercial Property Values are Down an Average of 43.7%
* CAP Rates Range Between 7% - 9.5% Depending on Property Type and Location
* 80% of All Current CRE Loans are held by local and regional U.S. Banks

Commercial loan Modification Is The Only Logical Solution for Borrowers with Maturing, Distressed, Foreclosure or Receivership issues going on. If a borrower has a property that was securitized as a CMBS (commercial mortgage backed security) loan they are in a very different position today from where they were a year ago as relates to the ability to modify the terms of the loan with their servicer. Since September (2009) three key moves were made by the government in an attempt to persuade investors in CMBS pools to be willing to modify existing commercial loans.

The IRS via Proc 2009-45 removed the tax liability for those investors who modify the loan on commercial real estate, thereby eliminating the cost factor from the commercial modification decision process. In addition the REMICS rules were changed to include language to cover loans not just "In Default" or where default was "Immanent" but also to include loans where default is "Foreseeable". This means cmbs loans maturing within a 12 month window with high ltv and lower cash flow due to the economy are eligible for modification and can be re-worked by special sevicers upon request.

The second piece was the FDIC release of a policy statement on modification of commercial loans issued in October of 2009. This 33 page document lays out the governments view of how, under what circumstances and by what terms banks should consider modification of CRE loans

Lastly the treasury extended the TALF program to keep the possibility of new CMBS originations out there while the market recovers and adapts to new regulations.

Taken together these actions created an environment where lenders are more than open to re-working existing CRE loans. For borrowers it is a life saver as they may be able to save their property from default. For Modification Servicers it is the perfect market to enter in these tough times as there is little competition and over 2 trillion dollars in loans coming due over the next couple of years. Let CommercialLeads.net help you get started in this lucrative market with our one of a kind Commercial Modification turn-key solution.