How-To · Commercial Real Estate

How to sell a commercial real-estate loan

Selling a CRE loan is a defined, confidential process: prepare the loan tape, share it under NDA, receive an indication of interest with proof of funds, allow focused diligence on documents you already hold, sign a purchase agreement, and close — assigning the loan for cash, typically in weeks with a direct principal buyer.

Process

The steps

Prepare the loan tape. Balance, rate, maturity, status, lien position, property type and location, recent valuation, payoff, rent roll, and current legal status. See the loan-tape checklist.
Sign an NDA. A seller-favorable confidentiality agreement before any data changes hands.
Receive an indication of interest. A written bid with proof of funds. A principal buyer prices for reality — assuming routine documentation and deferred-maintenance findings — so the number holds.
Confirmatory diligence. A focused review of documents you already hold. With a no-re-trade buyer, the bid stands absent a material, undisclosed change.
Purchase agreement. Counsel reviews a standard PSA; earnest money typically goes hard at the end of a defined diligence period.
Close. All-cash through a national title company / institutional escrow; servicing transfer and borrower transition handled.

Direct vs. a competitive process

For a single credit, a direct sale optimizes for speed, certainty, and discretion; a competitive process optimizes for headline price across many buyers, over months. See selling direct vs. running a process, and quantify the economics with the loan-sale-vs-foreclosure calculator.

Common questions

How long does it take to sell a commercial loan?

With a direct principal buyer, an indication of interest within days of the tape and a close within days to a few weeks of a signed purchase agreement — versus months for a competitive process and 12–24 months for a foreclosure.

What documents do I need to sell a CRE loan?

The loan tape (balance, rate, maturity, status, lien position), property type and location, the most recent valuation, payoff statement, rent roll, and current legal status — documents you already hold.

Do I have to notify the borrower?

No. A direct sale is confidential, with no borrower contact without your written authorization; you exit the relationship without a public process.