Have a seller with 8 new unoccupied townhomes, appraised at $269k each. Seller needs 180k per unit; $160 for bank and he wants 20K to walk. Construction loan almost 3 years old, on the brink of calling in the note, despite no missed payments. Open to all suggestions.
Why are the properties vacant?
Since you only want to hear from “pros”, I hesitate to comment. I don’t have any advice for you but I do have a couple of questions.
If the bank is ready to call the loan due even though the payments are current, could it be because the bank feels that the properties’ market value has fallen enough that the owner is in danger of becoming upside down? What other reason can the seller give for why the properties have not sold, other than they are overpriced for the market?
dbranch,
Glad to meet you,
The bank really has been more than lenient about leaving a construction loan out there for 3 years it looks like to me.
I recently had a call from someone in the same position, only his loans where from investors and they want their money. Only there is 15 million dollars worth of new construction houses that range from $800K to over 1 million.
My recommendation to him was holding an Auction, utilizing a Professional Licensed Auctioneer, who understands how to market the properties. He agreed that this is his best hope of selling as the properties have set to long and the investors are putting on the pressure to sell them.
John $Cash$ Locke
let’s start with this simple question. “what do you want out of the deal?”