You might have been in the commercial development business for years and years. You might have done everything by the book, conservatively. You weren’t speculating or taking huge risks like the other guys. But the general overbearing market slump has affected your property’s bottom line, and for the past few months you haven’t been able to make mortgage payments. The development’s underwater, and you’re considering a prudent commercial loan mod. A prudent loan workout isn’t an easy feat to accomplish. Getting some banks to even consider it will take some brute force will. But ultimately, if your property’s a viable business—and the bank feels it is—a prudent commercial loan mod will be mutually beneficial.
The commercial mortgage modification will invariably entail an audit of the property’s books and pertinent business documents: business plans, tenant lease agreements, floor plans, accounting records, etc. The commercial loan renegotiation will be tough, and will likely take a toll on your confidence in the venture, but you should realize that the bank does not want to see you default and does not want to foreclose. The bank would much rather have you see a mortgage—any mortgage, the original mortgage, a modified mortgage—through to maturity. The bank has as incentives a number of government programs that help prod lenders toward remediation rather than complacently letting the borrower default. Take a stand for the interests of your venture and business. Don’t let the bank get the upper hand during the commercial mortgage renegotiation. Just as purchase prices of commercial property’s set the tone for the pro forma, the terms that you fight for will set the tone for the property for years and years to come.
Other articles you might like;
- The Commercial Financial Crisis
- The New and Improved Commercial Modification Blog!
- Get A Commercial Loan Workout To Help You Now
- When Choosing Loan Modification Foreclosure Can Be Dodged
- Use The Short Payoff Strategy To Your Advantage
