Financial crises in the last decade have forced many Minnesota residents to surrender their homes to the ir banks in a foreclosure. It is a painful process, and in some cases, families subject to foreclosure are forced to leave the residences where they had built their lives and raised their children. However, foreclosure does not only impact residential real estate properties. Foreclosure can also occur in the commercial real estate realm.
A foreclosure may be initiated when a mortgage holder misses payments toward the satisfaction of the property’s loan. As both residential property holders and commercial property holders can have mortgages, both can be subject to the difficult prospect of not having the money to make expected periodic payments. A foreclosure places possession of the affected property back with the entity that extended the mortgage loan and removes the mortgage holder from ownership of the property.
When a business loses its rights to its property through foreclosure, it may struggle to find a new place to operate. A mortgage holder can have financial liability toward the satisfaction of the mortgage depending upon how many payments he missed and the terms of his mortgage. Without a place to operate and pending foreclosure-related bills, a business may be forced to close its doors if it cannot maintain its mortgage payments.
Foreclosure is a damaging process for owners of both residential and commercial properties. Through foreclosure families can lose their homes, and businesses can lose the physical spaces out of which they operate their enterprises. To learn more about foreclosure in either the residential real estate or commercial real estate realm, readers of this Minneapolis real property law blog may reach out to property law attorneys in their geographic areas.