Financial Funding LLC Gives Insightful Information on the Process of Foreclosing on a Blanket Mortgage
Commercial Mortgage Blanket loans can be a bit tricky, however they are possible to obtain.
New York, NY (I-Newswire) November 27, 2013 - While this topic, foreclosure, is one that no one ever wants to deal with, unfortunately it happens. When the loan is a blanket mortgage, the process is more complicated, as you will have more than just one property at risk. While Financial Funding LLC does lend on blanket mortgages, our professionals want you to be fully aware of the process if the loan should go into foreclosure.
A blanket mortgage is basically a loan which is taken out by borrower which covers the cost of acquiring more than a single property. The recession has created a vacuum in the property market because for the first time in US realty history, there are ghost developments in every single state of the Union; a"ghost development"being a housing development which was built, but none of the homes were ever occupied. In this scenario where you as the investor finds one of these groups of houses on occupied, you may wish to take out a mortgage on several of them at once, and instead of signing several individual mortgages you choose what's called a blanket mortgage instead.
For most investors getting a blanket mortgage in the first place is quite tricky because most banks shy away from the prospect of investing in several properties, distressed or otherwise, at the same time. Basically a blanket mortgage is a tricky investment for anyone to handle, and of course the same level of complexity haunts them if you were to default on your blanket loan. However, the mortgage professionals at Financial Funding LLC do not shy away from blanket loan as a means to help qualify for the transaction that you request.
As with any loan if you don't maintain your payments on it, you automatically default on the loan itself. With a normal mortgage this default would result in you simply losing a single property to the banks, but with a blanket mortgage, you stand to lose your entire portfolio encumbered by the mortgage. Most banks are agreeable to the idea of you selling some of the properties or land to repay your debt, but it tends to be a downward spiral whereby your debt grows and you eventually lose every single property by selling them one by one to simply service your growing debt.
The situation he comes even more complicated if the properties covered under your blanket mortgage are located in a different state where the foreclosure process might have regulations or stipulations you're not familiar with, leaving you with the same predicament of losing your entire investment.
In the unlikely event that you are considering taking out a blanket mortgage on several properties (if you've managed to secure a lender offering to do this), then we would strongly suggest that you get expert legal and financial advice before signing any final documentation. If nothing else you should ensure that your blanket mortgage includes a clause which allows you to sell any of the properties covered by the mortgage as and when you see fit. This is especially true if the blanket mortgage itself is owned by several parties, and one party wants to "sell their way"out of the investment. The program of a blanket mortgage with Financial Funding LLC does offer the ability to sell any of the properties covered by the blanket mortgage.
Remember there's a very good reason why the vast majority of mainstream banks don't want to involve themselves with a blanket mortgage of any size and simply that they are far, far too risky proposition, with a strong likelihood of default. Please contact our staff to discuss how Financial Funding LLC can assist you, as we are experienced in working with blanket mortgages.
The current flood of properties on the market means that you can acquire real estate for a mere fraction of what it cost just a few short years ago, but just because something is cheap doesn't necessarily mean it's a good investment.
Please feel free to contact Financial Funding LLC to discuss blanket loan to further and to assist you with all of the products that we have to offer. Please visit our website at www.financial funding LLC.com or give Michele Williams a call at 212 - 725 - 0197.
About Financial Funding LLC
Financial Funding LLC
2 Industrial Way West
Phone : 732-559-0500
Published On:November 27, 2013
Print Release:Print Release
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