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....You can be foreclosed on because they simply want out, not because you are not paying. ...
This makes no sense. Foreclosure means they become the owners of the property and now have to be involved with running it until they can find another buyer for it. It's not getting out, it's diving into it head first with an anchor tied to their waist.
Right, it sounds to me like this was financed with some sort of balloon payment - which is now due, and the current owner is having a tough time finding alternate financing.
Right, it sounds to me like this was financed with some sort of balloon payment - which is now due, and the current owner is having a tough time finding alternate financing.
Perhaps I'm wrong...
Maybe. But is actually more likely his loan has what are called financial covenants. Financial hurdles he has to prove every quarter. For example, Ghazi probably has to show the bank that he has X amount of cash on hand, and that his business meets certain financial ratios at certain periods in time. My guess is he’s in violation of many of those and the bank is excising their right to call the loan. Or, he could just be behind on his payments, LOL!! As I said, he’s a terrible businessman who was out of his league when he entered into this project. There are other companies out there who have more experience with this type of project would could come in a do a better job.
Right, it sounds to me like this was financed with some sort of balloon payment - which is now due, and the current owner is having a tough time finding alternate financing.
Perhaps I'm wrong...
You were right. It did have a balloon, and he can't get it refinanced.
We are in a huge recession(depression really) right now. These types of things should not be unexpected. If anyone wants to point fingers, then point them at the Federal Reserve and their easy interest rates that encouraged the runaway lending and spending that led to this bust we have right now. Expect more foreclosures to occur. Now that the stimulus has run out, the commercial retail market will continue on the collapse that it was heading towards a few years ago.
Well, regardless of the financing issues (which are terrible for businesses all over this country) I hope that the property thrives, b/c the last thing we need is zombie property on that site.
If you look at the cover of the Observer online, you can see what I mean about how dirty it is. Just concrete and signage. The ground is always covered in litter and there is absolutely no potted plants or anything to make it look inviting to anything but a drunken college kid in the dark. This place needs to attract a wider audience or it's doomed.
“This will not affect the operations or the project in any way,” Ghazi says. “It is simply a lender and borrower issue. We are confident once all is said and done that the project loan will get restructured and reorganized with our lenders or a third-party lender.”
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