Commerical Property Forclosure

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What is the name of your state? Ohio
Ohio
We own a retail business that is struggling along with the commerical building it is operating in. Our loans are, unfortunately, set up with our personal guarantee. The building is set up as a LLC and the business is set up as a corporation.
The building/business are the purpose of the loans and are listed on all the loan documentation as the collaterial.
We currently have the building/business up for sale and we are, at this time, current with all vendors/bank/taxes etc, but only with our contributing additional cash from our personal account, which is dwindling down.
We are up against the wall and I am considering contacting the bank to advise them of our situation. Even if they work with us, I am not sure how much we can afford since we already pretty much spent everything available to us.

How would the foreclosure process work on something like this? Does the lendor have to come after the commerical property first or can they come after our personal property? When or should we we contact an attorney? What kind of attorney specializes in foreclosers.

 

[seniorjudge]

What is the name of your state? Ohio
Ohio
We own a retail business that is struggling along with the commerical building it is operating in. Our loans are, unfortunately, set up with our personal guarantee. The building is set up as a LLC and the business is set up as a corporation.
The building/business are the purpose of the loans and are listed on all the loan documentation as the collaterial.
We currently have the building/business up for sale and we are, at this time, current with all vendors/bank/taxes etc, but only with our contributing additional cash from our personal account, which is dwindling down.
We are up against the wall and I am considering contacting the bank to advise them of our situation. Even if they work with us, I am not sure how much we can afford since we already pretty much spent everything available to us.

How would the foreclosure process work on something like this? Does the lendor have to come after the commerical property first or can they come after our personal property? When or should we we contact an attorney? What kind of attorney specializes in foreclosers.

Q: Does the lendor have to come after the commerical property first or can they come after our personal property?

A: The lender will go after all property listed in the mortgage; if there is a deficiency, then the lender will go after the property (real, personal, mixed) of whoever is on the loan.


Q: When or should we we contact an attorney?

A: Money is the only thing that will solve this problem. Rather than hiring a lawyer, pay down your debt.

 

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More Info

The retail business is a restaurant with liquor license. There is a loan for the building and another loan for the business. Would the lendor foreclose on the business first and sell the license and then the building? Would they foreclose on just the business loan and allow us to try to keep the building payments up until the building sells?
Another question is how much would the building be sold for at the auction?
Do commercial properties sell at a sheriff auction the same as a home would?