--- title: Commercial Loans and Fun Blog | clearing the market description: clearing the market | George Blackburne, owner, offers insight into the commercial loans and mortgage industry in this Commercial Real Estate Loan Tips blog. --- [![c-loans-logo-2025](https://info.c-loans.com/hs-fs/hubfs/images/c-loans-logo-2025.png?width=183&height=86&name=c-loans-logo-2025.png)](https://c-loans.com) [Terms of Use](https://www.c-loans.com/terms-of-use) | [Disclaimer](https://www.c-loans.com/disclaimer) | [Blog](https://info.c-loans.com/) # Commercial Loans and Fun Blog ## [Commercial Foreclosures and Clearing the Market](https://info.c-loans.com/bid/53762/Commercial-Foreclosures-and-Clearing-the-Market) Posted by [George Blackburne](https://info.c-loans.com/author/george-blackburne) on Fri, Mar 25, 2011 - [Tweet](https://twitter.com/share) *Commercial REO's Must be Deeply Discounted to Finally Sell* Take the very same commercial property. If you sell it retail - the normal kind of sale to another investor - the commercial property may sell for $1 million. Ahhh, but if the lender unwisely let's word slip out to the real estate brokers in town that the property is a foreclosure, the commercial lender will be lucky to fetch $600,000 for the exact same property. Why? As soon as the investing world learns that the property is an REO, every potential buyer wants a 40% discount. ![sold commercial building](https://info.c-loans.com/hs-fs/file-13894304-jpg/images/sold_commercial_building.jpg)There is a price, however, at which every commercial property can be sold. It's the price where the commercial property finally ***clears the market.*** "Clearing the market" is a price so low that a buyer can finally be found. ***Liquidation*** is a term that is very similar to clearing the market. Liquidation means taking an asset and reducing it to cash. For example, let's suppose a finance company repossesses a living room set sold on an ***installment sale*** (sold for 12 or 24 monthly payments). The finance company will then liquidate the used furniture; in other words, sell it, in order to pay off its unpaid debt. Hard money commercial lenders are taking a terrible beating during the Great Recession because first commercial real estate fell by 40%. Then every potential buyer of the property wants an additional 40% discount off the already-discounted fair market value of the property because the property is an REO. As the owner of a commercial hard money lender, [**Blackburne & Sons**](http://www.blackburneandsons.com/), I can tell you that it's maddening. --- Are you a potential commercial borrower? You should download our important, free, whitepaper, [**How to Close a Commercial Loan During the Great Commercial Lending Drought.**](https://info.c-loans.com/how-can-you-find-the-cheapest-commercial-lender-for-your-deal/) --- Are you a mortgage broker? Download our free [**Commercial Loan Placement Kit**](https://info.c-loans.com/download-your-free-commercial-loan-placement-kit) that includes a list of 200 hungry commercial lenders, a Commercial Loan Placement Checklist, an important whitepaper entitled, How to Place a Commercial Loan When Banks Are Too Terrified to Lend, and our webinar on Structured Finance. This kit is ***free!*** --- Are you commercial borrower? Wish you too could get a copy of this free list of 200 [**commercial lenders**](http://www.commerciallenders.com/)? --- Are you an accredited investor? If so, what are you doing with your IRA? Accredited investors are earning 11% to 13% in first [**trust deed investments.**](http://www.blackburne.com/invest/) --- Do you need a commercial loan right now? You can submit your commercial loan to 750 different commercial lenders in just four minutes using CommercialMortgage.com. And this [**commercial mortgage**](http://www.commercialmortgage.com/) portal is ***free!*** --- Follow George Blackburne on [**Twitter.**](http://twitter.com/#!/gblackburne) 0 Comments [Click here to read/write comments](https://info.c-loans.com/bid/53762/Commercial-Foreclosures-and-Clearing-the-Market#comments-listing) Topics: [commercial foreclosure](https://info.c-loans.com/topic/commercial-foreclosure), [commercial REO](https://info.c-loans.com/topic/commercial-reo), [clearing the market](https://info.c-loans.com/topic/clearing-the-market), [clear the market](https://info.c-loans.com/topic/clear-the-market) [All posts](https://info.c-loans.com/all) ### George Blackburne III Owner of C-Loans, Inc. ![George Blackburne III C-Loans Owner](https://info.c-loans.com/hs-fs/hubfs/George%20Head%20Shot%20Small%205%20by%207%20copy.jpg?width=158&name=George%20Head%20Shot%20Small%205%20by%207%20copy.jpg) ### Subscribe via E-mail ### Connect with C-Loans ## [![Get the Latest Scoop on C-Loans Inc.](https://no-cache.hubspot.com/cta/default/37671/bacfb58b-143e-40d7-b126-33c182b5b90b.png)](https://cta-redirect.hubspot.com/cta/redirect/37671/bacfb58b-143e-40d7-b126-33c182b5b90b) C-Loans.com® is sponsored by  C-Loans, Inc. — For more information, contact Tom Blackburne 555 University Ave., Suite 150, Sacramento, CA 95825 Telephone: (916) 338-3232 x 317 * Tom Blackburne in Indiana: (574) 210-6686 * Fax: (916) 338-2328 Real Estate Broker -- California Department of Real Estate -- License Number 01330173 Arizona Dept. of Financial Institutions – License Number 0909472 The Florida Mortgage Brokers License Number: 0708758 [Read our many client Success Stories](https://c-loans.com/mortgage-brokers-overview/success-stories/) » © 2025 C-Loans, Inc. 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