Quote:
Originally Posted by Lakesrider
So if the owner of the store was foreclosed on, and the lease was made null and void, why didn't the store runners make a deal with the bank holding the mortgage to buy it. I would think the bank would have been pretty open to that instead of taking back an empty property.
I am no Realtor and I am sure it shows, but it is too bad the owners of the store part couldn't have bid on the property, and made a go of it from there. Or maybe it wasn't worth it?
I wonder how much it went for at auction? I'd love to have the garages in back, for my car restoration shop.
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When the bank forecloses they have an obligation to get as much as they can for the property. If they get less than the debt they can go after the person that was foreclosed on for a deficiency judgement and that person would be obligated to pay the difference between what was owed and what it sold for. If they get more than the debt and expenses they have to return the surplus funds to the person that was foreclosed on.
The people that were runniing the store own two other stores and may not have been in a financial position to purchase the property. Commercial mortgages typically require 25% down payment and a demonstrated ability for the property to carry itself. Many banks look for 125% debt coverage based on the income.
For what it is worth Murphy is still talking to the bank as of today and the sale to him is still not finalized.