manager's proposal

© Western America Commercial LLC. 2009. All Rights Reserved. The information herein is subject to change without notice.

Manager’s ProposalOctober 26, 2009


Options Considered

• Bite the bullet (not enough support)

• Accept the lender’s modification terms (terms too onerous)

• Seek alternative modification (lender already declined once)

– Refuse fees, costs– Refuse interest deferral– If unsuccessful, allow foreclosure

• Allow the property to foreclose (not enough support)


WAC’s Evaluation

• Co-Owners have supported the cash call• Co-Owners willing to contribute more• Cash call amount must be as low as possible• Co-Owners want more favorable terms• Co-Owners willing to risk losing the property• Co-Owners not ready to lose it now


Loan Modification Requested• Length

– 18 months increase to 24 months • Interest payments

– None for 2 months same

– Reduced by 50% for 16 months increase to 22 months – Actual reduction, not deferral same

• Principal payments– None

• Fees & costs– None same

• $90K contributed by Co-Owners• Option to extend the loan • Option to roll up


Lender Has Already Declined Once


Lender responds, future consequences arise

manager's proposal

Business

property coowners

possible coowners

coowners option

favorable terms coowners

wacs evaluation coowners

fees costs nonesame

loan modification

months actual reduction