Are You Considering A Commercial Loan Modification? – Check Out These Six Frequently Asked Questions about Commercial Loan Resolutions And Workouts

WHAT IS A COMMERCIAL LOAN MODIFICATION?

Literally, a commercial loan modification is a permanent change to the original note signed by the borrower and lender. This change can be made to anything having to do with the note, most often the terms, rate or principal balance. Lenders usually only allow for a commercial loan modification to a property that is behind in payments or in danger of doing so. Loan modification is commonly incorrectly used interchangeably with what is actually a loan workout/resolution. Loan workouts can be helpful to borrowers as well and can be in the form of a forbearance, suspension of accruing interest, etc.

CAN IT BE DONE QUICKLY?

Normally a it takes between 1-3 months to complete a commercial loan resolution, every case is different of course so exact processing times may vary even with similar scenarios. However, anyone who has applied for a residential loan modification can attest that this is much faster than the 6-9 months it takes to get a loan resolution for their home.

DID I WAIT TOO LONG?

In most states borrowers have until the actual date the property goes on sale to save their property. In addition, borrowers can still hire a lawyer after the property is auctioned off to see what can be done. However, the best option is to take action as soon as possible because it will obviously be more difficult and cost more as the foreclosure process progresses.

SHOULD I CALL THE BANK MYSELF?

Just like filling out your taxes you can do it yourself, but the more money involved, the more you want a professional on your side. The same is true when negotiating with banks. You can try to put in the time to do all the numbers, fill out all the applications and spend hours on the phone negotiating with the bank, all while running your business and taking care of your family…or you can hire professionals whose only purpose is to get you the best terms possible, in which case they will essentially pay for themselves with the money they will save you.

WE WERE TOLD ALL WE CAN DO IS SELL?

There are always multiple options for any borrower up until the time the property is actually sold. Commercial Loan Modifications/Workouts have been around, but the current economic environment presents many new problems so there is a lot of misinformation out there and you should always check your sources before taking the advice.

WHAT ARE THE CHANCES I WILL BE ABLE TO GET A LOAN WORKOUT?

Lenders sincerely do want to help commercial borrowers. Commercial loans usually have considerably high balances and it only makes business sense that they would rather have a borrower that can consistently make payments than waste time trying to foreclosure on a property. At the same time every situation is unique and each bank will have its own guidelines. The best thing to do is to get a free consultation so someone can review your individual case.

Looking to find the best deal on commercial properties, then visit www.nationalcommercialresolutions.com to find the best advice on choosing acommercial loan modification company.