Can a Commercial Lender accept a short pay even though the Loan is current?

In General Area - Asked by Al B. - May 6, 2013
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Answer(s)

Aurelio M.
Broker/Agent
Torrance, CA

I have never seen a commercial lender allow a short pay. My best advice is to ask the lender directly. You never really want to advise anyone not to pay their mortgage.

May 7, 2013
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Stephen W.
Broker/Agent
Houston, TX

no

May 8, 2013
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Tresa O.
Broker/Agent
Houston, TX

This is in a nutshell...very abbreviated, but should give you a place to start. YES there are lenders who will accept a short sale! It is not unusual during these times, especially in those areas that had over valued bubbles, to allow a revaluation of the property and then the lender (who doesn't want a commercial foreclosure loss to show up on his books) will usually be willing to sell the note for less than what is owed. It's called a 'note sale'. So tell your customer, he doesn't have to be behind in his mortgage. IF the property is worth less than original appraisal, but more than what he owes, and if he wants to keep the property, he should approach the lender about selling his note to a willing investor / note buyer. There are a lot of those out there. One place to find them is through Ray McLain, President, CREOBA. (Commercial REO Broker Association.) IF the customer wants to outright sell off the property, and it is valued for less than what is owed, then he can approach his lender about what possibilities are available to him. They may insist on selling the note first, or they may work out something. It does happen.

May 20, 2013
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Lawrence T.
Lender/Mortgage Broker
New York, NY

Yes you can. Not every bank or situation but yes. I have done it. To much to go into here.

Jul 2, 2013
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Nathan D.
Broker/Agent
Yucaipa, CA

In brief, the answer is yes. Depends on the circumstances but chances are increased if the property value is only a fraction of what the loan amount currently is.

Jul 20, 2013
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Ahmed Z.
Lender/Mortgage Broker
Long Beach, CA

let me put it nicely and smoothly , If you short pay , late then your chances of obtaining any kind of financing will reduced dramatically.
WHY? Short paying means some financial institution is not getting paid on commitment. and that by itself affects the credit character of the borrower. which is one of the most importance Credit piece
.

Jan 14, 2014
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Glen W.
Lender/Mortgage Broker
Atlanta, GA

yes a commercial lender can, but it is typically not likely although there are always special circumstances.

Mar 11, 2014
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