There Is A Better Way To Accomplish Short Sales

I have been talking to commercial real estate brokers all over the country and they report similar issues: There is plenty of private money and desire available for buying but sellers are trapped by their debt and while motivated to sell, they are blocked by their desire to sell for a price high enough to wipe out their debt. Yes, short sales are a possibility but the personal guaranty for the shortfall remains a real problem and a barrier to making the sale.

Many sellers who are in default and wanting to sell their commercial real estate are supported through the short sale process then attacked for their personal guaranties after the sale is concluded, so this does not work out at all. Short sales may work for the bank and the buyer but in the end, not for the seller.

A better program is needed and we have designed and implemented exactly what works. A short sale followed by an Offer in Compromise submission to either the SBA (if the loan was guaranteed) or the secured bank. It works in all situations. This frees the property to be sold for what it is worth today and frees the seller in default to walk away without crushing personal debt issues following them. Of course, the Offer in Compromise will require some payoff, however, this is what I term “affordable losses”. This works. No bankruptcy, no loss of personal assets, no long-term indebtedness, just a great solution to a potentially devastating problem.