Question: “What are typical non-foreclosure mitigation options for commercial property?”
In a commercial default situation, where you’re dealing with loss mitigation, you have the opportunity to either come to an agreement with the creditor to return the property and then agree to some amount of deficiency. There are principal reduction plans where there can be a down payment by the debtor, thereby making the creditor better off from a collateral standpoint. There are myriad options. The driving force behind working out a commercial default is going to be, what the focus is of the creditor, and what the means are of the debtor. Sometimes, what the creditor’s going to require simply cannot be afforded by the debtor, so it’s important to get an attorney involved who is familiar with commercial workouts.
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