Warning signs
By the time a Receiver is appointed, the causes of distress often look obvious. Hinesh Varsani explains where the red flags usually appear – and what brokers can do before a transaction reaches that point
Section: magazine
A receiver sees a loan at the point when optimism has collided with reality. The refinance has not completed, the sale has slipped, rent has stopped reaching the lender or an apparently straightforward asset has proved far more complicated to control and sell.
Yet genuine distress rarely arrives without warning. In most cases, the signs were present months earlier. They sat in the gaps between the borrower's account of the transaction, the documents available and what the asset could realistically deliver. While brokers are not expected to predict every default, they are often well placed to identify those gaps before a proposal reaches credit.
From the instructions we see across residential, mixed-use and commercial property, these are the 10 questions worth asking.
Read the full story in B&C Magazine, here.
Keywords: belleveue mortlakes, bridging finance, receiver, receivership, distressed loans, specialist finance, residential finance, commercial property, specialist finance brokers
Source: Bridging & Commercial — https://bridgingandcommercial.co.uk/warning-signs