Sep 23, 2009 – South Lake Tahoe, CA. Today Leadsnet Inc. a leading provider of commercial mortgage leads announced their marketing partnership with Genesis Financial and Real Estate Services of Scottsdale Arizona. Genesis provides loan and workout consulting services to owners of commercial properties nationwide.
"This partnership allows us to bring more value to the table on behalf of commercial real estate owners who want help in negotiations with mortgage servicers", says Ted Schmidt, President of Leadsnet. Leadsnet owns and operates the commercial mortgage modification web portal www.CommercialModification.com, the country’s top ranked website for commercial modification queries.
With the number of commercial loans coming due in the next few years combined with the fact that commercial real estate values have fallen often 30% or more, balloon loans that are maturing will fail. Properties with income sufficient to service the debt cannot even refinance if the value of the property is less than the indebtedness. This imbalance is estimated to be about $270 billion and growing.
Many commercial properties are experiencing increased vacancies along with decreasing rental rates. This disastrous combination makes the monthly debt service almost impossible for borrowers. “Sometimes there is a better alternative to foreclosure” quotes Roger Simard, president of Genesis Financial and Real Estate Services. “In our consultative and advisory role, we use our extensive network of experts in accounting, commercial real estate and bankruptcy law and mortgage lending to assist us.
Sometimes alternative solutions such as purchasing the note, to assist the owner in stabilizing their property or bringing in an equity partner is the best solution”, added Simard.
Recent changes in IRS tax rules allow owners of commercial property whose loans have been packaged into CMBS (commercial mortgage backed securities) and sold to investors by REMIC's (real estate mortgage investment conduits) to modify loans prior to default without jeopardizing the REMIC's tax exempt status.
"Since the IRS rule change last week we have seen a marked increase in traffic and lead production at our website. The past cases that we have attempted modification on and were denied because they were CMBS loans, can now be reworked in light of the changes, With Genesis on board, I am confident that the commercial property owners we refer are in very capable hands", says Mr. Schmidt.
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