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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Recourse loan or not? Posted by Lou on December 27, 2009 at 4:22 PM In Reply to: Recourse loan or not? posted by Rick, the Probate Guy on December 27, 2009 at 2:09 PM Thanks Rick for your response. The loan is recourse as the LLC (100% ownership) and myself are on the line personally for the debt. The "fair market value" of the property should come in at least the value of the note. Deficiency laws in this state require the fair market value or trustee sale price to be less than the note and fees in order for a deficiency judgment to be granted. In addition, there is another piece of property that has been crossed for security. Both of the sales are happening over the next week. We have been trying to obtain financing through many different sources. The only taker to date is the "hard money" at $1mm. We believe the bank would be in a better position, as well as ourselves, to take the funds from the hard money loan and sell the note at a reduction. This would clear the default from their books and remove the lawsuit. Also, the project would be able to pay for itself with 75% occupancy (projected time 18 months). What would be a reasonable buyout percentage on existing note these days? Commercial looks like it's going to get beaten much more with the coming $1.7 trillion paper coming due in the next several years. Thanks Again Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : Thanks Rick for your response. : The loan is recourse as the LLC (100% ownership) and myself are on the line personally for the debt. : The "fair market value" of the property should come in at least the value of the note. Deficiency laws in this state require the fair market value or trustee sale price to be less than the note and fees in order for a deficiency judgment to be granted. : In addition, there is another piece of property that has been crossed for security. Both of the sales are happening over the next week. We have been trying to obtain financing through many different sources. The only taker to date is the "hard money" at $1mm. : We believe the bank would be in a better position, as well as ourselves, to take the funds from the hard money loan and sell the note at a reduction. This would clear the default from their books and remove the lawsuit. Also, the project would be able to pay for itself with 75% occupancy (projected time 18 months). : What would be a reasonable buyout percentage on existing note these days? Commercial looks like it's going to get beaten much more with the coming $1.7 trillion paper coming due in the next several years. : Thanks Again [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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