1. Commercial Loan Modification
Difficult economic times have caused commercial real estate owners to default on their
commercial loans. The economy, loss of revenues from vacancies and tenants filing bankruptcy
have resulted in commercial property owners having to dip into their own pockets to make their
mortgage payments. Many commercial loans are in default or about to be in default and owners
are at risk of losing their commercial apartment complexes, industrial warehouses, office
buildings, shopping malls and other commercial real estate. There is relief for commercial
property owners by obtaining a commercial loan modification from their lender.
Negotiations
The process of obtaining a commercial loan modification is accomplished by renegotiating the
terms of your existing commercial loan with your mortgage lender. The modifications may take
the form of lower interest rate, extending the term of the loan, reducing your loan balance and
eliminating any late fees or penalties. You may also be able to negotiate a moratorium on having
to make payments for three to six months until your property vacancies are filled and your
tenants start making their rental payments again. Following a high rate of commercial
foreclosures, commercial lenders are cooperating with their commercial borrowers by opening
up negotiations and the willingness to give them a loan modification. They have realized that
they don’t need any more foreclosed property on their books.
However, lenders are still sometimes difficult to deal with. They are concerned about making
money and are not looking out for your best interests. The best solution is to hire a commercial
real estate attorney to negotiate your loan modification so that you are more likely to obtain
favorable modification terms and a resolution to your financial situation. The lender will take
your modification request much more serious when you have an attorney representing you. Also,
if you are like most commercial property owners, you don’t have the time it takes to spend on
tracking down your lender and following up on your modification. You only get one opportunity
to negotiate a modification, so you should take advantage of the expertise of a real estate
modification attorney to assist you with the task.
Attorney Assistance
Learning how to deal with lenders and negotiating loan modifications is difficult for most
business owners and commercial property owners. It takes years of training and skill as well as
knowledge of mortgage and disclosure laws to successfully negotiate a favorable loan
modification for your commercial property. It will be much more difficult for you to achieve
positive results if you try and attempt the task on your own. The attorney knows what not to say
to your lender and how to avoid their objections so that you have a higher chance of getting
favorable results and a modification that is really going to save you money and make your
payment more affordable. Commercial real estate attorneys are experts at lending and disclosure
laws and can find creative ways to negotiate a modification that works for both you and your
lender.
If you need assistance with your commercial loan modification and foreclosure prevention
options, please contact the LAW OFFICES OF ALG & ASSOCIATES for a free consultation.
