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To: mishedlo who wrote (108963)	2/25/2010 3:25:32 PM
From: rich evans	Respond to of 116555

The easy answer is to pay the taxes, insurance, maintenance and salary expenses and give the remainder to the bank. The bank can then decide what to do. Their normal recourse would be to appoint a receiver under the Calif Receivership statute, but since the owner is acting like a receiver in good faith, they probably will not take any action and work with the owner to redo the mortgage debt. rich

To: mishedlo who wrote (108963)	2/26/2010 4:36:58 PM
From: Elroy Jetson	Respond to of 116555

I would second Rich Evan's answer to the commercial real estate problem. Don't pour your own capital into mortgage payments. Message 26346000 A small minority of banks will want to foreclose when they receive less than the full mortgage payment. Almost all banks will rewrite the commercial property mortgage again and again in order to "keep your loan current" while the rents continue to produce insufficient funds to pay for the mortgage, after paying repairs and management expenses. Each time the loan amount will be increased with the "cash-out" held in reserve by the bank "to make the mortgage payments". In spite of what one might expect, these loans will be reissued for mortgage amounts approaching and sometimes exceeding the current appraised value of the property. If you were stupid enough to give a personal guarantee of all your assets and income for the commercial loan, the bank may still be willing to rewrite the commercial loan and continue to let you manage the property rather than proceeding against your personal assets.