A former banker advises commercial property owners to "appraise commercial real estate to protect it from bottom feeders".
All across the USA, on courthouse steps, foreclosures are happening.
With cash flow down, many business people simply cannot keep up with payments.
I know a man, formerly worth millions, who had a property worth $1,000,000. He had a loan on it for $800,000. He became behind on his payments, so the bank foreclosed on the property. But, when they "bid" in the foreclosure price, the lender bid it in at $300,000. So technically, the bank "bought" the property back for $300,000. The bank quickly liquidated the property to a friend of the bank for $500,000 and then filed a judgement on the original owner, for a "deficit" of $300,000.
My friend not only lost his property, but he also had a judgement against him by the court for the $300,000 that he still owed.
IF MY FRIEND HAD CALLED AN APPRAISER, AND HAD HIS PROPERTY APPRAISED FOR THE FULL $1,000,000 THAT IT WAS REALLY WORTH, HE WOULD HAVE HAD AN ARGUMENT TO SAY THE BANK "BOUGHT IT BELOW MARKET VALUE AND SOLD IT AT BELOW MARKET VALUE, THEREFORE CAUSING HIM HARM".
It is an argument of what is fair and equitable. Many judges do not appreciate banks, radically lowering values, only to liquidate to "friends" and then punish the original borrower even more.
Protect your assets. BBAR Inc. (www.benboothe.com) has years of experience doing valuations, and they also have MAI appraisers who can stand up in court to help protect your assets. For more information call: 817 738 9595. Ben Boothe, President of the company said: "I was once a bank President, and also a lender, so we know how some play the game. But something as simple as an appraisal can put a lender on notice that you intend to see that you or the bank, get's fair market value for your assets" said Ben Boothe, Commercial Appraiser.