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Follow on Google News | Real Estate Professionals Brace for the Next Wave of Commercial Property Defaults and ForeclosuresMortgage Brokers Continue to Search for Solutions as Many of their Clients Struggle with Cash Flow, Pending Balloon Payments and Foreclosure Notices
By: Jamie Sene “We are now seeing the consequences of the liberal, sometimes reckless lending practices that took place in the 2005-2007 era,” says Jeramie P. Concklin, CEO of Guardian Solutions http://www.guardiansolutions.org/ Projections for the commercial real estate market, while more optimistic than 12 months ago, still appear sluggish and universally time-inadequate. Foresight Analytics, (a division of TREPP, LLC) reported that the nonaccrual rate, or serious delinquency rate, among commercial mortgages reached nearly 4 percent in Q3. This is a new peak for the nonaccrual rate. Foresights’ analysts noted the increase in the delinquency rate for commercial mortgages as “especially notable”. They further warned that the presently underwater loans, coupled with the historically high amount of maturing loans, will be impacting the market significantly in the next several quarters. Analysts at Foresight went on to speculate that a much improved economic recovery, accompanied by real estate valuation increases, would alleviate some of the pressure on the commercial mortgage sector. However, most analysts and experts foresee this level of distress to be an ongoing theme for an extended period. The struggles continue for property owners as anchor tenants continue to seek concessions and national chains announced recent branch closures. As more commercial real estate property owners see tenants go bankrupt, downsize or invoke their escape clauses, they have begun to feel the serious effects of the economy. Although the national commercial vacancy rate appeared to stabilize in the third quarter of 2010, the road to recovery is likely to be very lengthy and gradual. Above- However, a growing number of commercial property owners are exercising options to avoid foreclosure. New strategies have been developed that help real estate owners to hedge their assets against additional declines in valuation. Throughout 2010, more and more agents and brokers have heard from clients who were searching for ways to save their assets from foreclosure and help restore them as performing assets. Guardian Solutions, a commercial loan restructuring company based in Clearwater, Florida, has seen a steady increase in the number of real estate professionals contacting them in hopes of helping their clients. In 2010, Guardian has more than doubled its client base as a direct result of industry referrals. “Guardian Solutions can help commercial property owners restructure their loans by first evaluating an owner’s asset performance and market potential. From that type of information and other analytical data we compile, we can create a comprehensive restructuring proposal including strategies for modifying the owner’s current mortgage with the lender.” Said Ira J. Friedman, President of Guardian Solutions. “Armed with industry specific knowledge and working-relationships with many of the nations’ special servicers, Guardian Solutions’ mitigation professionals enter negotiations with the lender to secure advantageous terms for the client, while addressing the concerns of the lending institutions,” About Guardian Solutions Guardian Solutions is a focused commercial loan restructuring firm. Guardian works with commercial properties across the United States and is committed to helping commercial property owners save their properties. The company’s experienced professional staff consists of MBA’s, Real Estate Professionals and financial analysts. Each specialized team member is personally devoted to his or her part in helping owners of distressed assets. For more information, visit www.GuardianSolutions.org Contact: Jamie Sene Vice President, Marketing Guardian Solutions 727-442-8833 jvs@guardiansolutions.org http://www.guardiansolutions.org/ # # # Guardian Solutions is one of the nation’s leading commercial loan modification firms. Our team of MBA’s, Accountants and Real Estate Professionals assist companies avoid the pitfalls associated with their commercial mortgages that are called due. End
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