U.S. unemployment is nearly 10 percent according to official government statistics, but factoring in individuals ineligible for unemployment benefits and part-time workers, this statistic increases to a dangerous near 17 percent. If that wasn’t already bad for business, Guardian Solutions, a Florida based commercial loan restructuring firm, is seeing increasing numbers of business owners with income-producing commercial properties requiring loan restructuring to keep their doors open.
“With the unemployment rate as high as it is, the last thing the economy needs is more commercial property foreclosures on businesses that are employing people,” said Jeramie Concklin, CEO of Guardian Solution.
Commercial real estate industry analysts predict that delinquency rates leading to foreclosures will increase further through 2010 and peak in late 2011 or early 2012. Deutsche Bank estimates that around $2 trillion in commercial mortgages are expected to come due within the next four years.
Short of a loan restructuring, many commercial property-owners will face losing their income-producing assets, which subsequently could produce more detrimental repercussions on the economy. Lending institutions will be left with nonproducing assets in a market flooded with foreclosed properties, adding further illiquidity to the credit markets.
One hotel owner who was able to save his distressed property with the aid of Guardian Solutions was Tom LaSalle, owner of LaSalle Management Limited II. “Two months prior to Guardian Solutions’ closing resolution on my case I could not have anticipated such a positive result,” said LaSalle.
Ira J. Friedman, President for Guardian Solutions, says giving borrowers the time and tools necessary to stabilize the property and turn it back into a positive-cash-flow business allows the lending institution to book the property as a performing asset. However, because of the technical and legal hindrances involved with restructuring a commercial loan, many property-owners may ignore their position and accept foreclosure rather than work proactively to save their investment.
Guardian Solutions has been able to help stressed property-owners navigate the complex procedures and negotiations associated with a successful loan workout. “The secret sauce is to always secure the best possible terms for the client while simultaneously addressing the concerns of the lending institutions,” says Conklin. “businesses need real assistance - the economy needs the help.”
About Guardian Solutions
Guardian Solutions is the one of nation’s largest commercial loan restructuring companies and is committed to helping commercial property owners save their properties. The company’s knowledgeable mitigators are experienced in a variety of disciplines to provide customized restructuring solutions. For more information, visit www.GuardianSolutions.org
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