Investing in commercial real estate can be a risky undertaking because typically there are high monetary assets at stake. If you are struggling to keep on top of your loan repayments that are tied to commercial real estate property, it is likely that you are worried about the threat of foreclosure in the future.
By monitoring your financial situation closely and understanding the process of foreclosure, you may be able to avoid such an outcome. There are several options for you as the owner of commercial real estate in Texas.
Look into loan modification possibilities
If your financial situation has changed, by making your lender aware of this, they may be able to help you by modifying your loan obligations. For example, if you are struggling to rent out a property, your lender might allow you a “vacation” from repayments for some months so that you have time to find a new tenant.
Talk to your lender about forbearance
If you have already missed loan repayments, you may be able to address this issue by requesting a forbearance from your lender. Forbearance is a situation in which the lender agrees to not move forward with foreclosure as long as the debtor fulfills the required demands of payment.
Go through a short sale
A short sale is generally considered the last-resort option in avoiding foreclosure. A short sale is an act of selling the property at below market value in order to appease your lender.
If you are struggling to make repayments on your commercial real estate property, it is important that you take early action to avoid foreclosure.