What are the consequences of defaulting on a commercial real estate loan?

Defaulting on a commercial real estate loan in California can have serious consequences. Depending on the size of the loan, defaulting could mean that the borrower would owe a significant amount of money to the lender. In certain cases, it could mean that the borrower will have to give up some of their rights to the commercial property as a form of repayment. Furthermore, if the borrower defaults on a commercial loan in California, the lender may sue the borrower for the balance of the loan. This could mean court costs in addition to the amount of money, which would result in further financial strain. If the lender wins the case, they may be able to seize the commercial property if it’s valuable enough to cover the debt. Moreover, the borrower’s credit score could be significantly impacted by defaulting on a loan. This could make it difficult for them to borrow money for a long period of time, as lenders may not want to give the borrower a loan due to their bad credit history. All in all, defaulting on a commercial loan in California is not a decision to be taken lightly. Not only can it result in the loss of property, but it can also affect the borrower’s financial standing for many years to come.

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What are the consequences of defaulting on a commercial real estate loan?

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