Valuation aspects of debt restructuring: solvency issues
Article Abstract:
The prolonged economic recession and the generally adverse market conditions in real estate have forced many real estate owners to restructure their loans. While there are many approaches by which restructuring can be accomplished, one of the highly preferred methods is by transferring the property to the lender in return for debt and outright debt cancellation. Unless properly planned, property transfers can result in unnecessary tax complications. Valuation of the property plays a significant role in the negotiations for a property transfer.
Publication Name: Real Estate Accounting & Taxation
Subject: Real estate industry
ISSN: 0897-0262
Year: 1993
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Professional standards related to bankruptcy appraisals
Article Abstract:
Real estate appraisers use certain professional standards such as real estate appraisal reporting standards, promulgated real estate value definitions and proper timing of real estate appraisals and relate them to the bankruptcy environment. However, there are no real estate appraisal professional standards that would exactly relate to the bankruptcy process. Appraisers must consider other factors aside from the bankruptcy environment to obtain professional standards for evaluating real estate appraisals.
Publication Name: Real Estate Accounting & Taxation
Subject: Real estate industry
ISSN: 0897-0262
Year: 1992
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Valuation and evaluation process for bankruptcy
Article Abstract:
Real estate appraisers have unique skills derived from their line of work that may aid creditors, advisors and debtors who are in the process of filing for bankruptcy. The procedure for valuation involves asset categorization and evaluation of value of the property. The cost approach, market approach and income approach are three methods of valuation appraisers use. They also determine income stream and the appropriate capitalization rate for the property involved.
Publication Name: Real Estate Accounting & Taxation
Subject: Real estate industry
ISSN: 0897-0262
Year: 1992
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