Banks bend for commercial property owners - Minneapolis / St. Paul Business Journal:

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Banks seem more receptive now to loan such as adjusting the amount due on the loan toalloa what’s known as a shory sale, because they don’t want more foreclosesd properties on their books, said Bishop, owner of Orlando-basedr . “We’re seeing a total changde in the commercial real estate markein Orlando.” In addition, Dan Colachicco, regional manager for , had a clientg whose lender extended a defaulted loan for five years, shiftexd it from an amortizing loan to one that’s allowed six months of paymenft relief and paid overdue real estates taxes. “Some banks are going to some lengthsw to avoid taking backreal estate.
” That’ds welcome news in a market that two months ago rankedd No. 10 among the most commercial loan defaultws inthe nation. Nearly 5 or $340 million worth, of Centra l Florida’s commercial mortgage-backed security loans were in default in said Horsham, Pa.-based RealPoint LLC. That wave of defaults isn’tg quite over yet, as mortgages on many more propertiex financedthrough short-term loans in 2006-06 are updated this year, said Jeff president and managing principal of in Orlando. As a many banks are more willing to reworko some of those he said. That, in turn, has helped generate property sales — so long as they’re at discountes rates.
“Everything we’ve sold in 2009 has been discounted” by more than 20 Sweeney said. “That’s what’s sellingy right now — the distressed, short-sale, discounted It’s the Memorial Day sale of real ButBishop — whose brokerage business has grown 30 percen in the past two months said banks are not approving all short-salwe prices. Typically, brokers must work harder to get a solid offer in hand before the bank will see it as an optiojbesides foreclosure. Many times, lenderx look at the real estate involved and determinewhether it’s well-positioned to perform in the long added Colachicco. “Every lender has a different philosophy.
” That philosophyu may be based on whether or not the bank is overwhelmedc withbad loans, said Van chairman and CEO of Orlando-based Florida Bank ­ov Commerce. The lenders that already have a lot of distressed properties on their books are eager to approvse short sales orother workouts, he said. But the market is so better-leveraged banks aren’t in a “A lot of banks are holding off,” Boganj said, “because they believe in a yearor so, they’l be able to get a better