manager's proposal
TRANSCRIPT
© Western America Commercial LLC. 2009. All Rights Reserved. The information herein is subject to change without notice.
Manager’s ProposalOctober 26, 2009
© Western America Commercial LLC. 2009. All Rights Reserved. The information herein is subject to change without notice.
Options Considered
• Bite the bullet (not enough support)
• Accept the lender’s modification terms (terms too onerous)
• Seek alternative modification (lender already declined once)
– Refuse fees, costs– Refuse interest deferral– If unsuccessful, allow foreclosure
• Allow the property to foreclose (not enough support)
© Western America Commercial LLC. 2009. All Rights Reserved. The information herein is subject to change without notice.
WAC’s Evaluation
• Co-Owners have supported the cash call• Co-Owners willing to contribute more• Cash call amount must be as low as possible• Co-Owners want more favorable terms• Co-Owners willing to risk losing the property• Co-Owners not ready to lose it now
© Western America Commercial LLC. 2009. All Rights Reserved. The information herein is subject to change without notice.
Loan Modification Requested• Length
– 18 months increase to 24 months • Interest payments
– None for 2 months same
– Reduced by 50% for 16 months increase to 22 months – Actual reduction, not deferral same
• Principal payments– None
• Fees & costs– None same
• $90K contributed by Co-Owners• Option to extend the loan • Option to roll up
© Western America Commercial LLC. 2009. All Rights Reserved. The information herein is subject to change without notice.
Lender Has Already Declined Once