A lot of people think that homes are the only things that are foreclosed on, but that’s simply not true. A lot of commercial properties are lost that way, too, because people can no longer pay for them. It may be that they had a commercial property for their business and the business closed, or it could also be that they rented out the building to tenants, and those tenants went out of business. Either way, it can become very difficult to pay for a commercial space if there isn’t any income being generated in it.
It’s frustrating for the person who bought the building, and it’s frustrating for the lender who extended the money for the building. Both will generally lose in a foreclosure situation. The up side to that issue is that it’s a great time for buyers to purchase commercial buildings. If they have the money and/or can get the financing, they can buy properties for a fraction of what they would have needed to pay at the height of the property bubble. Most people thought the pricing bubble only affected houses, but that wasn’t necessarily true. All property went up in value, and the vast majority of it came crashing back down, making it a true buyers market – but only for buyers with good credit and decent down payments.
If you’re looking for a good commercial property, now may be the right time for you to find something great. Check around in your area and see what you can locate, because the odds are good that you’ll be able to negotiate much more now than you would have been able to even a few months ago. The longer a property has been on the market, and/or the closer it is to going into foreclosure, the better chance you’ll have of getting it for a price you’re really happy with.