Commercial Discounted Notes and CRE-Finance LLC

Online, May 1, 2014 (Newswire.com) - Did you know that CRE- Finance will loan on commercial discounted notes? How do you document the file? If you run across the owner of a commercial loan who needs to discount it, what documents do you ask for?

The professionals at CRE-Finance LLC assembled a "Dream List" of the documents that a buyer of a discounted commercial loan would love to see. It is unlikely that you will be able to gather all of the documents listed below, but try to get as many of them as possible. The better your discounted commercial loan is documented, the smaller the size of the discount.

1. Color photos of the property.

2. Copy of Promissory Note and Mortgage*

3. Original title insurance policy (or fresh prelim)*

4. Something showing the payment history*

5. Closing statement from when note was created*

6. Financial statement on the maker/borrower (when the note was created)

7. Credit report on the maker/borrower (when the note was created)

8. Two years' tax returns on the maker/borrower (when the note was created)

9. Appraisal - an old one is very helpful and a new one is blissful

10. Rent roll and/or commercial leases (when the note was created)

11. Current financial statement of the Maker, current credit report on the Maker, last two years tax returns on the Maker, current Rent Roll, current commercial leases. The documents listed in item 11 here are rarely available.

* Very, very important

Find out early who has possession of the original Promissory Note and Mortgage. It is legally impossible to properly assign a note and mortgage to the assignee (buyer of the discounted commercial loan) without delivering the original promissory note.

In fact, if the assignee (buyer of a discounted commercial loan) fails to take physical delivery of the original promissory note, and if the assignor (the seller of the discounted commercial loan) later files Chapter 7 bankruptcy, the promissory note becomes the asset of the bankruptcy estate! The intended assignee is completely wiped out.

You are not going to run across discounted commercial loans every day. Months from now you may need to refer back to this article for the list of documents to gather. So be smart. Please bookmark this page right now.

Got a discounted commercial loan that needs financing? Want to speak to a loan officer? Please call Rich at 212-257-7307 or Todd Tretsky at 212-257-7305 or visit us at www.cre-finance.com