Rai Chertkoff Real Estate Guides

In Event of Foreclosure

Foreclosure of a mortgage typically extinguishes all claims to the property. In other words, if you’ve negotiated a lease and started a business, your right to use the retail space is terminated by foreclosure unless there is a separate agreement.
Will Lender Cancel?

In many cases, the lender has a defined period of time to reject leases or they are assumed to remain intact. Further, lenders often want to retain the leases and tenants to make the property more salable. However, if the rental rate for a lease is well below market rent, and the tenant is clearly successful, the lender would likely terminate the lease and require the tenant to negotiate a new lease at market rent.
Negotiating From a Position of Weakness

In Event of Foreclosure

Foreclosure of a mortgage typically extinguishes all claims to the property. In other words, if you’ve negotiated a lease and started a business, your right to use the retail space is terminated by foreclosure unless there is a separate agreement.

Will Lender Cancel?

In many cases, the lender has a defined period of time to reject leases or they are assumed to remain intact. Further, lenders often want to retain the leases and tenants to make the property more salable. However, if the rental rate for a lease is well below market rent, and the tenant is clearly successful, the lender would likely terminate the lease and require the tenant to negotiate a new lease at market rent.

4 “Options HELP Homeowners Avoid Foreclosure – Real Foreclosure Defense!

Foreclosure prevention offers 4 choices, each depending on a property owner’s unique situation.

No matter what you might hear, avoiding foreclosure is NOT a one-size-fits-all solution.

Every property owner’s situation is unique:

1. Some property owners want to try to save the house.
2. Other property owners want to unload the house.
3. Some property owners clearly suffer documented (financial) hardship.
4. Other property owners clearly do NOT suffer documented (financial) hardship.
5. Some property owners have one mortgage…on which they are current.
6. Other property owners have 2 or more mortgages on which they’re many months in default…an HOA/condo lien…a code enforcement lien…on a funky property with scattered comps.

Bank foreclosures are preferred by first time buyers looking for an affordable home to become their primary place of residence. These buyers have the ability to take out a commercial loan from a lender and would like to find the most secure transaction they can find. They are often advised to consider bank owned, or real estate owned properties, as these homes can fulfill the new buyers requirements.

Things in Common

Like bank foreclosures, government owned foreclosed homes are being sold through auctions and are typically listed online in multiple listings services and other online foreclosure listings sites. Both types of homes are sold ‘as is’, so buyers should expect to spend money on repairs and rehabilitation.

Bank foreclosures are preferred by first time buyers looking for an affordable home to become their primary place of residence. These buyers have the ability to take out a commercial loan from a lender and would like to find the most secure transaction they can find. They are often advised to consider bank owned, or real estate owned properties, as these homes can fulfill the new buyers requirements.

Things in Common

Like bank foreclosures, government owned foreclosed homes are being sold through auctions and are typically listed online in multiple listings services and other online foreclosure listings sites. Both types of homes are sold ‘as is’, so buyers should expect to spend money on repairs and rehabilitation.