Napa Crossing South is an 81,440 square foot shopping center on Soscol Avenue - a trophy property with quality tenants. Unfortunately, the delays in filling vacant space may have hurt cash flow leading to a notice of default being posted, and a potential foreclosure.
As we discussed in part one, the posting of the notice of default for an unpaid debt of $37.3 million is most likely the result of unsuccessful forbearance or temporary modification of the loan. This leads to the lender having no choice but to accelerate the loan, causing the entire outstanding loan coming due.
All hope is not lost, there are still a couple of options remaining to prevent foreclosure.
If the borrower is still not able to make payments after the agreed to forbearance period expires or is not able to comply with the new terms of a loan modification than a deed in lieu of foreclosure is another possibility.Read More