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Commercial property loans that make use of real estate as collateral are a little different from residential real estate loans.

Unlike residential property loans, a building will be used in order to secure repayment to the lender rather than a residence. A business will usually take on a commercial property loan, not an individual borrower.

A corporation, LLC, and even a partnership can borrow for a commercial property loan. This fact causes for the assessment of the credit of the borrower in a commercial mortgage to be much more difficult for the lender than it would be with a residential property loans borrower.

In some cases, commercial property loans are nonrecourse. What this means is that in the event of default in repayment, the creditor may only seize the collateral, and has no further claim against the borrower for any other assets. The reason for this is twofold: there are sometimes laws that significantly prevent the creditor from going after the borrower for any deficiency, and mortgages structured for sale as bonds will tend to give a higher priority to constantly receiving some sort of income and therefore require a clause that allows the lender to take the property immediately, regardless of bankruptcy proceedings that the borrower might be going through.

Many times the loan can be supplemented by a personal guarantee from the owner of a property, which makes the debt payable in full even if foreclosure on the mortgaged collateral does not satisfy the outstanding balance.

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Take a look at Egypt property to find out more about investing in property there.