Options for Florida Commercial Owners Facing Foreclosure or a Loan Maturity
If your commercial loan is coming due and you can't refinance, or your lender has already filed, it's easy to feel like you've run out of choices. Usually you haven't, but the choices get narrower the longer you wait. I'm Jonathan A. Chames, P.A., a Broker Associate with Epique Realty, based in Fort Lauderdale. I work with owners in Broward, Palm Beach, and Miami-Dade counties. This page lays out the main paths in plain language so you can have a better conversation with your attorney and your lender.
This is general information, not legal advice. Talk to your attorney about your specific situation, and to your CPA about tax effects.
How a commercial foreclosure usually moves in Florida
Florida foreclosures go through the courts. In broad strokes, the lender files and records a lis pendens, the court enters a final judgment, and the property goes to a clerk's sale, often an online auction. Every case moves at its own pace. The point is that you usually have some time before the sale, and what you do with it matters.
Option 1: Sell before the auction
If the property is worth more than what you owe, a sale before the clerk's sale is often the best way to keep your equity. A quick, confidential sale to a funded buyer can pay off the loan at closing. The key is starting early. Buyers need time for due diligence, and every month of default interest and fees eats into what you walk away with.
Option 2: A note sale
Sometimes the lender decides to sell your loan (the "note") to an investor instead of finishing the foreclosure itself. You don't control that decision, but it can change who you're negotiating with. A note buyer may be more open to a deal than a bank that just wants the loan off its books. Your attorney can help you understand what the new holder can and can't do.
Option 3: A short sale
If the property is worth less than the debt, a short sale means the lender agrees to accept less than the full payoff so the property can sell. Lenders want to see a real buyer, a realistic price, and clean paperwork. Ask your attorney whether the lender could still come after you for the shortfall, and ask your CPA about the tax side.
Option 4: Work with the lender
Before or after a filing, lenders will sometimes agree to an extension, a forbearance period, a loan modification, or a deed in lieu of foreclosure. None of these is guaranteed. You'll get a better hearing if you come with current numbers (a rent roll, operating statements, and a clear plan) rather than a request for more time.
Working with special servicers and asset managers
I also work with special servicers, lenders and asset managers on distressed commercial assets, including REO and note sales, broker opinions of value, and marketing to qualified buyers.
What I do for owners in this spot
- Give you an honest opinion of what the property would sell for today, so you and your attorney know whether you have equity.
- Market it quietly to buyers who show proof of funds, so tenants and competitors don't hear about it.
- Move fast and keep your attorney and lender in the loop on any offer.
I'm Short Sale & Foreclosure Certified by NAR (SFR®), so I know how lenders review a short sale and what they'll ask for.
FAQ
- Can I still sell my property after the lender files for foreclosure?
- In many cases, yes, up until the clerk's sale. Your attorney can confirm the deadlines in your case.
- What happens if my loan matures and I can't refinance?
- You may be able to negotiate an extension, sell, or bring in new capital. Talk to your lender early. Waiting tends to cost you options.
- What is a note sale?
- It's when the lender sells your loan to another investor. The new holder takes over the lender's rights, and sometimes it's more willing to negotiate.
- What is a short sale on a commercial property?
- It's a sale where the lender agrees to take less than the full loan balance. The lender has to approve the buyer and the price.
- Will a quiet sale keep my tenants from finding out?
- A confidential sale limits who knows. Property details go only to vetted buyers, and tenants aren't contacted without your OK.
- Is this legal advice?
- No. This is general information. Talk to a Florida attorney about your situation before you make a decision.
Get a free, confidential consultation call.
Call me at 305-215-4515. We'll look at what your property is worth today and which options are realistic. Your attorney is welcome on the call.
Jonathan A. Chames, P.A., Broker Associate, Epique Realty · 5978 SW 37th Ave, Fort Lauderdale, FL 33312 · 305-215-4515
Not legal advice. Talk to your attorney.