Commercial Foreclosure

Lenders don’t like their property in foreclosure any more than the debtor. The process and time involved with paperwork, hiring staff for property evaluation and asset management along with court proceedings leave the lender with more work and sometimes less value for the commercial property. The commercial foreclosure process is more time consuming in the end, therefore the lender would rather not foreclose but look for reorganization and viable options before foreclosing on the property.

Laws vary from state to state, but the foreclosure process generally involves the same long and lengthy process. If you file for bankruptcy it can take anywhere from a few months to over a year to complete the process. While in this foreclosure process, the court appointed receiver will primarily keep the property from eroding, and handle all the financial records, vendors, utilities and property maintenance.

In most commercial foreclosures, which eventually will lead to the “Trustee Sale”, the appointment of a Court Receiver to take over the asset prior to sale would be a better option for the lender in most cases.