More details to this question:
If we go in for a voluntary foreclosure of our business property will the bank sell the property and give us the remaining amount after to loan balance is paid off ?
The market value of our business is more than the loan balance
1 ANSWER
Assuming there are no other creditors, you would receive any overage, that is any money from the foreclosure sale above the amount you owe (which would include interest and various fees) would go to you. However, any property sold at foreclosure or any type of distress sale will go for a lower price than if sold in the normal course of business, probably nowhere near what you think is the fair market value. There are also fees associated with foreclosure sales which will have to be paid "off the top".
Answered on Oct 09th, 2013 at 1:10 PM