I am attempting to SHORT SALE commercial vacant land condo lots approved by governing authorities.
These lots are part of the borrowers total loan. The lender received this portfolio by taking over another
bank thru FDIC bank take over.
Do I do anything different? Will the defincency be taxable? Is the lenders loss insured by the Feds?
Thanks in advance.
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The only thing that changes, is probably you have to start the process all over. Chances are in commercial property, the servicer and the investor are the same (at least in my limited experience). I have done 4 commercial short sales. Much easier than residential.
The deficiency is taxable but the borrower usually writes it off as a business loss.
Is the lender's loss insured by the Feds?? Haha No and yes. No, it is not insured by the Feds. The banks have to write off their loss like anyone else. Yes, in the sense that the Federal reserve always bails out the major players, but none dare call it a conspiracy! ;)