On the face of it, a loan sale is a loan sale. It’s a means of getting a troubled asset off the books in a shorter time frame than foreclosure would entail, although often with smaller proceeds than a foreclosure auction could provide. Yet for banks and special servicers, the considerations differ.
One group has to balance the pluses and minuses of conducting the sales with the quarterly ups and downs of its other operations, while the other has a clear-cut responsibility to the CMBS trust. Neither has a clear-cut edge in getting the most benefit from selling notes.
One of the “blatant advantages” the special servicers have over banks is ready access to information pertaining to a particular loan, says Bliss Morris, founder and CEO of First Financial Network, based in Oklahoma City. Because the loans in special servicing have generally been securitized, the documents are bundled together, rather than potentially scattered across several bank branches.
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
