Banks bend for commercial property owners - Kansas City Business Journal:

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Banks seem more receptive now to loan such as adjusting the amountr due on the loan toallow what’s knowhn as a short because they don’t want more foreclosedd properties on their books, said owner of Orlando-based . “We’re seeing a total changs in the commercial real estate market in In addition, Dan Colachicco, regional manager for , had a clienft whose lender extended a defaulted loan for five years, shiftede it from an amortizing loan to one that’s interest-only, allowecd six months of payment relief and paid overdue real estatee taxes. “Some banks are going to some lengths to avoid takinb backreal estate.
” That’s welcome news in a marketg that two months ago rankedr No. 10 among the most commercial loan defaults in the Nearly5 percent, or $340 milliojn worth, of Central Florida’s commercial mortgage-backedf security loans were in default in said Horsham, Pa.-based RealPointr LLC. That wave of defaults isn’t quite over yet, as mortgagexs on many more properties financedthrough short-terk loans in 2006-07 are updated this year, said Jeff Sweeney, presiden t and managing principal of in As a result, many banksz are more willing to rework some of those he said. That, in turn, has helped generate property salez — so long as they’re at discounted rates.
“Everything we’ve sold in 2009 has been by more than20 percent, Sweeney said. “That’se what’s selling right now — the distressed, discounted properties. It’s the Memorial Day sale of real ButBishop — whose brokerage business has grow n 30 percent in the past two months said banks are not approving all short-sale prices. Typically, brokers must work harder to get a solid offer in hand beforr the bank will see it as an option besides foreclosure. Many times, lenders look at the real estater involved and determinewhether it’s well-positioned to perforj in the long term, added “Every lender has a different philosophy.
” That philosophgy may be based on whetherf or not the bank is overwhelmed with bad said Van Bogan, chairman and CEO of Orlando-based Florida Bank ­ofc Commerce. The lenders that alreadhy have a lot of distressed propertied on their books are eager to approve shory sales orother workouts, he said. But the markeyt is improving, so better-leveraged banks aren’ty in a rush. “A lot of banks are holdinb off,” Bogan said, “becaus they believe in a year or so, they’ll be able to get a bettere price.
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