Banks bend for commercial property owners - Orlando Business Journal:

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Banks seem more receptivs now toloan workouts, such as adjustingy the amount due on the loan to allow what’s know n as a short sale, because they don’tt want more foreclosed properties on their books, said Bishop, ownef of Orlando-based . “We’re seeing a totakl change in the commercial real estate market in In addition, Dan Colachicco, regiona manager for , had a client whosse lender extended a defaulted loan for five shifted it from an amortizing loan to one that’s allowed six months of paymenf relief and paid overdue real estatre taxes. “Some banks are going to some lengthw to avoid taking backreal estate.
” That’sw welcome news in a market that two monthw ago ranked No. 10 among the most commercial loan defaults in the Nearly5 percent, or $340 million of Central Florida’s commerciao mortgage-backed security loans were in defaultf in March, said Horsham, Pa.-based RealPoint LLC. That wave of defaultzs isn’t quite over yet, as mortgages on many more properties financedthrough short-term loans in 2006-07 are updatedr this year, said Jeff Sweeney, presidenrt and managing principal of in Orlando. As a many banks are more willingg to rework some of those he said. That, in turn, has helped generate properttysales — so long as they’rse at discounted rates.
“Everything we’ve sold in 2009 has been by more than20 percent, Sweeney said. “That’s what’sz selling right now — the short-sale, discounted properties. It’s the Memorial Day sale of real ButBishop — whose brokerage business has grown 30 percen in the past two months — said banksa are not approving all short-sale prices. brokers must work hardet to get a solid offer in hand befors the bank will see it as an optionbesidees foreclosure. Many times, lenders look at the real estatwe involved and determinewhether it’s well-positioned to perform in the long added Colachicco. “Every lendere has a different philosophy.
” That philosophuy may be based on whether or not the bank is overwhelmefd withbad loans, said Van Bogan, chairman and CEO of Orlando-based Florida Bank ­of The lenders that already have a lot of distressedx properties on their books are eager to approvr short sales or other workouts, he But the market is so better-leveraged banks aren’t in a rush. “A lot of banks are holdinh off,” Bogan said, “because they believe in a yearor so, they’lk be able to get a better price.
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