Loan Restructuring A Sign Of Hope In A Dismal Commercial Real Estate Industry Forecast

Clearwater, FL (Vocus) August 9, 2010

Although the U.S. economy appears to be showing preliminary signs of recovery with the stabilization of some large financial institutions, the commercial real estate market continues to be negatively affected by the ongoing decline of home prices, the high rate of commercial loan defaults and an unmoving high unemployment rate. Treasury Secretary Timothy Geithner recently darkened this scenario by warning that unemployment could continue to rise before subsiding.

Jeramie P. Concklin, CEO of Guardian Solutions, a commercial loan restructuring firm based in Florida had this to say, The rate of growth of delinquencies in commercial mortgage-backed securities (CMBS) real estate loans did show some slight signs of moderating in July, but despite that, we are still seeing very high numbers of new distressed commercial mortgages in need of restructuring every week as evidenced by CMBS delinquencies surpassing 60 billion dollars, an increase of 3.11 billion from just the month prior.

A bright spot in this gloomy scenario is surfacing due to the efforts of independent commercial loan restructuring firms such as Guardian Solutions. According to Trepp, a leading provider of CMBS and commercial mortgage data and analytics, a recent trend has emerged that is having a positive effect on CMBS loans due to the increase in loan modifications by lenders. Loan modifications through July of this year already have surpassed those for all of 2008 and 2009 combined. Loan modifications (have) accelerated dramatically in 2010, the Trepp report said. This puts downward pressure on the delinquency number, as troubled loans get resolved and move from the delinquency category.

Based on the successful commercial loan workout results weve been getting for our clients, I can see that the biggest mistake that property owners tend to make is to do delay addressing the issue at the first sign of trouble, or even worse, to try to deal with lenders or special servicers on their own. But that being said, commercial property owners should know that they can take steps to improve their situation by seeking professional help and guidance while the situation is still salvageable; the longer they wait to act, the more difficult their situation becomes, added Concklin.

Commercial property owners who are trying to keep their properties viable are seeking help from firms like Guardian Solutions that specialize exclusively in commercial loan modification. Currently, there are only a handful of specialized firms that hire highly qualified employees, such as accountants, MBAs and real estate professionals to deal specifically with the complexities involved in a restructuring a securitized commercial property.

Guardian Solutions helps commercial real estate owners in distress every day, said Concklin. We are saving all types of commercial properties facing default. But the sooner we get into negotiations, the more options we have available to help. A restructuring plan thats put in place early on usually contains the most favorable terms and achieves the best results. With the dismal forecasts we have for the economy and for the commercial real estate market, its the wise property owners who are taking a look at their assets and preparing now for the eventual market declines.

The technical and legal aspects involved with securing a commercial loan restructure prompts many property owners to ignore their position and grudgingly accept foreclosure rather than save their investment. This can result in more than just losing the property, it can severely damage the borrowers credit and even lead to personal bankruptcy.

About Guardian Solutions

Guardian Solutions is the one of nations largest commercial loan restructuring companies and is committed to helping commercial property owners save their properties. The companys knowledgeable mitigators are experienced in a variety of disciplines to provide customized restructuring solutions. For more information, visit


Jamie Sene

Vice President, Marketing

Guardian Solutions



Related Securitization Press Releases

Home owners Looking for Hope in House loan Settlement Oversight Report

Minneapolis, Minnesota (PRWEB) August 31, 2012

The National Mortgage Settlement was reached in between forty nine states and 5 of the countrys most influential financial institutions, consisting of: Ally/GMAC, Financial institution of The united states, Citi, JPMorgan Chase and Wells Fargo. Each and every individual lender agreed to adhere to new home loan serving standards and to provide mortgage modification and other varieties of reduction. Amidst problem that the settlement was in truth possible to apply, Joseph A. Smith, Jr., was appointment as Keep an eye on on April 5, 2012 of the Workplace of House loan Settlement Oversight (OMSO).


Two days ago, Smith and the OMSO launched the first progress report.


Quantities on principal reduction are the first amount that Property Vacation spot is looking for. Currently being understood as the guide goal of the settlement, it stands out in the report that banks have nevertheless to control $ 1 billion to minimize the high charges. The report info exhibits that $ 749 million in first-lien and $ 231 million in second-lien reductions are the only numbers in from banking institutions. Disappointingly, the Lender of America has $ to report.


Anti-blight packages like bulldozing residences, providing residences absent, and forgiving deficiency judgments have made up an equivalent element to the number report as very first-lien modification forgiveness. Very on the opposite, brief revenue quantities show genuine development, a confirmation that banking companies prefer limited product sales to draining foreclosures. Right here is in which the dollars came from:&#13

Accomplished 1st Lien Modification Forgiveness $ 749.36M&#13
Finished Forgiveness of pre-three/one/12 Forbearance $ 348.94M&#13
Completed Second Lien Modifications and Extinguishments $ 231.42M&#thirteen
Brief Product sales Finished $ 8.669B&#13
Overall Other Software Action $ 458.75M&#thirteen
Refinance Consumer Relief $ 102.78M

Numerous surprise just what variation the Settlement has created in excess of life’s all-natural course of the way things switch out. Optimism is up with a balancing caution. “I will proceed to check the banking companies endeavours to satisfy their obligations beneath this settlement, as my workplace proceeds its perform to keep financial institutions and other monetary establishments accountable for the destruction theyve induced in our communities, stated Illinois Attorney Basic Lisa Madigan. Concluding his report, Smith explained, “I feel we have created a excellent first phase.”


The true query for several is centered on the place are the principal reductions for liable house owners who work challenging to obtain them? In reply as to why the financial institutions should comply greater, Realtor Journal suggests, “For starters, many of these institutions contributed to the problem with their securitization schemes and ended up rescued with trillions of dollars in taxpayer-funded bailout income. Though a significant volume has been paid back again, some has not and will never ever be returned.”


However it was not essential by the Settlement, Smith sponsored the creation of the OMSO, a not-for-income business intended to offer administrative help for his function. As transparency is essential for the Home loan Settlement to be successful, also, the OMSO will allow Smith to have out obligations transparently and independently with administrative oversight from the Board of Administrators.


The OMSO what to hear what customers are declaring about their activities with the five mortgage loan servicers. From mid-April to mid-August, folks from throughout the nation submitted issues about the troubles they are facing, and it goes a long way to provide about clarity to our leaders in office.


The Business office of the House loan Settlement Oversight requests help from a broad pool of intrigued members. It welcomes any property mortgage loan borrower, including the counselors, attorneys, or other specialists who assist the property owner, who have experiences with their Servicers that seem to violate these new requirements must share that information with OMSO through its site. Right here is the hyperlink. House Vacation spot encourages worried homeowners to make use of the invitation to gain aid and share any activities of violation.


Contact Jenna Thuening, proprietor of Residence Destination if you are a Minneapolis location home-owner facing a short sale, foreclosure, or require a person with the expertise of a Licensed Distressed House Professional to chat to. Get in touch with 612-396-7832.


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