avoid foreclosure on commercial property

Avoid Foreclosure by Breaking the Cycle of Decline

Whether you’re a lender or investor, mortgage defaults are bad news. For lenders, it means that their loan is in danger, and recouping the principle may be difficult. For investors, it means that the possibilities for success are beginning to dwindle. Once the debtor becomes delinquent on payments, time starts ticking until the eventual foreclosure takes place. Your best chance for avoiding foreclosure lies in recognizing that the property is in a cycle of decline.

Identifying the Cycle of Decline

When properties begin losing profitability, a common tactic to stop bleeding cash is to cut costs. Although this will decrease the amount of money that you are spending, the decision can be detrimental to real estate operations. The lack of improvements can cause the property value to enter into an irreversible cycle of decline. If you have been managing the property for a while, you may have difficulty noticing telltale signs that your property is in danger. Here are a few key things that you should look out for:

  • Unmaintained or dangerous walkways/stairways
  • High tenant turnover rate
  • New tenants are less creditworthy
  • Lapse of landscaping care and basic property maintenance
  • Uneven parking lot with cracks and potholes
  • Leaky roof and/or interior water damage

Break the Cycle and Avoid Foreclosure

Early identification is key to revitalizing your commercial assets and avoiding foreclosure. The sooner that you realize that your property is in trouble, the sooner you can begin righting the ship. Basic property maintenance and landscaping are immediate ways that you can improve your property’s curb appeal and improve foot traffic. For properties that are already deep into the cycle of decline, more extensive measures may be necessary to save the investment.

You will need to identify the root cause of the property’s trouble and form a plan to get things back on track. Repositioning the property and adapting to the current market will involve deep analysis and strategy, but re-evaluating the situation will be instrumental in preventing asset decline.

Following the 2008 recession, a local lender took control of a distressed office park in Conyers. The lender enlisted the help of EpiCity to help bring the property back to profitability. After running an initial assessment for demand potential, we recognized an opportunity to market the office park as a modern business environment. Our work allowed the lender to successfully sell their holdings and exit the property.

Avoid Foreclosure with Help from an Atlanta Property Management Company

If your property is quickly going under, it’s not too late to rescue it. But you will need to act fast. At EpiCity, we have a history of success with revitalizing distressed assets. Our local connections and extensive network of top professionals give us all of the tools required to successfully manage distressed investment properties in Atlanta and the surrounding metropolitan area.

Each of our specialists is involved and attentive. They will personalize a strategy for your situation while taking accountability for its successful execution. We have an inventive nature, and a pioneering ability to adapt that has kept our company running for over 90 years. Let us use our skills and experience to help bring your asset out of the cycle of decline, and back into profitability.

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