Defaulted mortgage debt can be resolved using a variety of strategies. Second Wind’s solutions have saved thousands of businesses, and our experts can help you determine which is the best path for yours.
In instances where the liquidated value of the real estate is less than the current mortgage, foreclosure is not an efficient or fruitful collection process for the secured lender. The process amounts to a lose-lose, as it costs time, money and resources for the bank while the borrower no longer benefits from the use of the property. Second Wind can arrange a third-party purchase of the building at a discounted price that still nets a better return for the bank while keeping the door open for a lease back to the business for its continued use.
In other cases, the lending bank may take possession of the property through a deed in lieu, for example, but will also allow its tenants to remain as lessees. As unlikely as it sounds, banks do this because occupied buildings are more valuable than empty ones.
Knowing the options for mortgage debt resolution is critical to the health of your business. Second Wind can help you be proactive and approach your lender with a comprehensive plan to assure success.