Posts Tagged ‘apartment building’

Ensuring a Commercial Loan Modification with a Forensic Audit

Monday, June 29th, 2009

A commercial loan modification is a modification to a loan agreement, which replaces an existing loan agreement. A bank or commercial lender is not required to consider or grant a commercial loan modification. A commercial loan agreement allows the lender to pursue a foreclosure when the borrower defaults on the commercial loan. However, if the lender went against any of the various regulations or consumer protection laws, they will not be legally able to enforce the original commercial loan agreement.

The average borrower is not up to date or fluent in the various laws and regulations lenders must follow. Nor are they aware of all their options when facing financial difficulties. A loan auditor, however, is and will examine every word of the loan papers to see of the borrower’s rights were in any way violated. This process is called a forensic audit. Conducting a forensic audit is one of the first steps a commercial loan modification professional will take when representing you.

A commercial loan modification professional understands the legal jargon surrounding fair lending laws, interest rates, pre-payment penalties, the Truth in Lending Act (TILA) and the Real Estate Settlement & Procedures Act (RESPA). If your commercial loan workout professional finds any violations within your commercial loan agreement, even if the violation was unintentional on the part of the lender, they will use that to go to the lender and demand a commercial loan workout. The commercial loan modification professionals at: http://commercial-modification.com always use forensic audits to help ensure their client’s commercial loan modification is  successful.

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Commercial Loan Modifications are a Relief in 2009

Friday, June 26th, 2009

Commercial loan modifications bring well needed relief to cash strapped business owners trying to weather the storm. According to national newspapers and research firms, there is currently a 30% vacancy in office buildings across the county. Landlords are being forced to lower their rent in an attempt to attract new tenants. Office space rent is dropping an average of 10% to 15% across the country. Commercial loan modifications allow these landlords and business owners to lower their monthly commercial loan payment so the remaining rents will still cover their expenses.

Commercial loan workouts are the outcome of negotiations between a lender and a commercial loan modification professional. Generally these commercial loan modifications result in the interest rate being lowered, the principal amount being lowered, or the life of the loan being extended and the monthly payments being adjusted accordingly. Commercial loan modifications may also include interest-only payments or a set amount of time when payments are not required. These are all options your commercial loan modification professional is aware of and can negotiate on your behalf.

According to Real Capital Analytics, these are currently an estimated $107 billion dollars worth of commercial loans in danger of slipping into default. These commercial loans are for shopping centers, malls, office buildings, apartment buildings and hotels. That is $107 billion dollars in commercial loans, which can be re-negotiated and modified to create a new and better loan. A commercial loan modification can prevent these loans from being lost to foreclosure and bankruptcy. Commercial loan workout professionals can save these businesses by working in the business owner’s best interest.

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Commercial Loan Modification Lingo Part 1

Wednesday, June 24th, 2009

A commercial loan modification is when a commercial loan is altered or modified to create a new loan agreement between the lender and the business owner. A commercial loan modification is designed to make the monthly loan payments more affordable to the business owner and possibly prevent the loan from going into default and/or foreclosure. A commercial loan modification may also be referred to as a commercial loan workout or a commercial workout. A business owner must qualify for a commercial loan workout, however, there are commercial loan modification professionals and firms who can help determine eligibility.

Commercial loan modifications are often pursued to avoid foreclosure. A foreclosure is when the lender reclaims the property paid for by the commercial loan and attempts to sell it to regain their investment. Before going into foreclosure, the business owner goes into default. Default is when the business owner has missed multiple monthly payments on their commercial loan. Once a business owner is in default, they should seek help in contacting the lender to consider a commercial loan modification. The person to contact is a commercial loan modification professional. http://commercial-modification.com A commercial loan modification professional is someone who works for an established commercial loan modification company. A commercial loan workout professional has experience working with commercial loans, commercial loan modifications, bank negotiations, and forensic audits. A forensic audit is a detailed look at your loan payments to make sure the lender did not violate any state or federal laws, including but not limited to: The Truth in Lending Act (TILA) and the Real Estate Settlement & Procedures Act. (RESPA).

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Commercial Loan Modifications are the Best Solutions for Lenders

Wednesday, June 24th, 2009

Commercial loan modifications are seen as the new solution for both business owners and lenders to endure the rough economic times. With the wide spread bankruptcies and foreclosures, something drastic needs to be done to calm the storm. The FDIC has encouraged lenders to pursue “creative problem solving” to stop the onslaught of lost loans. A commercial loan workout is the best solution for lenders because it protects the lender from a complete loss, and it keeps a business alive, which may allow it to become profitable. Despite the obvious benefits of a commercial loan workout to the lender, many lenders are hesitant to approach the business owner with this possibility. Lenders are overwhelmed now by the number of foreclosures crossing the desk. However, with the failing economy, allowing more commercial loan modifications will allow lenders to show investors that they can still thrive.

A commercial loan workout would enable the lender to maximize their recovery on commercial loans. Instead of spending the time and money it takes to foreclose on a business owners, and then attempt to sell the property to possibly regain a small portion of the money lost, lenders can re-negotiate the terms of the loan to create a new and better loan. This process is the making of a commercial loan modification. Most lenders have commercial loan modification professionals on staff to work out the best solution in the interest of the lender. This solution, however, is not always in the best interest of the business owner. For this reason, it is essential that business owners go to their lenders equipped with their own commercial loan modification professional to get the commercial loan workout they need.

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How Can The Truth in Lending Act (TILA) Affect My Commercial Loan Modification?

Thursday, June 18th, 2009

A Commercial loan modification is an alteration of an original commercial loan agreement. However, if the original commercial loan agreement violated the Truth in Lending Act (TILA), then it is not enforceable and must be modified. The Truth in Lending Act requires full disclosure of all terms, including any possible fees or finance charges. You will be able to get a commercial loan workout with conditions, which work best for you and possibly damages. Like most Acts, however, The Truth in Lending Act contains a great deal of information and subparts. This is why it is best to hire a commercial loan modification professional.

A commercial loan workout professional will be well educated on all the subparts of the Truth in Lending Act, which covers disclosures, annual percentage rate calculations, advertising, right of rescission, treatment of credit balance, record retention, state exemptions and rate limitations, to name a few. A commercial loan modification professional will be able to sort through the commercial loan papers for you and make sure your rights were not violated. When pursuing a commercial loan modification, you want any advantage you can get in the negotiation.

A commercial loan modification may be what you need to avoid bankruptcy and foreclosure. So it is important to utilize any advantage you have, and to have people working for you who understand commercial lenders, commercial loans and commercial loan modification. Hiring a commercial loan modification professional will give you the edge you need to go up against the bank or commercial lender. Hiring a commercial loan workout professional will be especially helpful if they do discover the original loan violated the Truth in Lending Act.

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How Do I Qualify for a Commercial Loan Modification?

Monday, June 15th, 2009

A commercial loan modification will create a new contract between you and your lender because the terms of the loan will have been changed or modified. The Commercial Loan Workout will potentially change the amount of principal you owe on the loan, change the percentage of interest you pay, or possibly extend the life of your commercial loan. Because of the fundamental change being made, you must be qualified in advance of the modification.

Being qualified for a commercial loan modification is something a commercial loan modification professional can help you determine. Your commercial loan workout professional will request various documents regarding the financial status of your business. They will look at your business’ equity, income, payment history and debt ratio, as well as any other factors, which may affect your business’ financial future. They will consider all the information presented to determine your eligibility for a commercial loan modification. Generally speaking, as long as you can show your business is currently or has the strong potential to produce income, you can be approved for a commercial loan workout.

Contacting a commercial loan modification professional is the first step to being qualified for a commercial loan workout. The best place to start your commercial loan modification is: http://commercial-modification.com. Commercial loan workouts is what they do, and you want a professional who is experienced negotiating with banks and commercial lenders. The lender will want a modification, which works in their best interest. Your commercial loan modification professional will make sure the commercial loan workout is what is in the best interest of your business.

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