What Does Commercial Short Sale Mean?
Commercial short sale in real estate means the sale wherein the proceeds fall short of the loan balance owed on a commercial loan. Typically, this occurs when the borrower could no longer manage or catch up on his monthly mortgage payments. In short sale, the borrower has to present a proposal to the lender or the bank rather than face commercial foreclosure. The lender or the bank will then make the decision to sell the commercial property at a price incurring moderate loss rather than pressing the borrower or the debtor. Both the borrower and the lender should have consent before the short sale of the commercial property could be processed.
