Commercial Modification » commercial loan review

Keep Up Your Relationship With The Bank

CLR Staff — Fri, 04 Mar 2011 18:57:52 +0000

Utilizing our years of experience, we present the a series of tips for the commercial property owner in default.

Many inexperienced people recommend holding off making payments in order to show the bank you are having difficulties. If making payments is not too much of a hardship, it is a good idea to maintain your account in good standing. This is certainly a sign of good faith in the face of a hardship. And keeping your credit score at high levels will be important if new funding is necessary. In most cases, it isn’t true that the bank will not consider a negotiation if you are not past due. If the bank refuses payment, do not use your funds for other reasons. It may be necessary to show good faith payment during the negotiation process.

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Keep All Your Options Open

CLR Staff — Wed, 02 Mar 2011 19:00:27 +0000

Presented by the Commercial Loan Workout specialists at CLR — tips for the commercial property owner facing financial hardships.

If your primary objective is to keep your property, then don’t rule out possible terms that the bank is willing to accept. If their best offer still doesn’t make sense, then, of course, accepting those terms wouldn’t make sense. But if your ultimate goal involves a principal reduction and the bank cannot or will not accept that, then you should consider alternative solutions to improving your cash flow.

Technorati Tags: commercial loan audit, commercial loan modification, commercial loan review, commercial loan review checklist

The Commercial Financial Crisis

CLR Staff — Fri, 25 Feb 2011 19:05:01 +0000

In the above video from CNN, a Congressional panel looks at the state of the commercial real estate market in the wake of the financial crisis. President Obama’s plan makes residential properties affordable but completely leaves out the commercial property owner. Commercial Modification companies like Commercial Loan Review (CLR) take up the mantle on behalf of the commercial property owner by working with banks to stave off foreclosure and help with clash flow problems. Banks are willing to talk to residential property owners in order to comply with TARP (Troubled Asset Relief Program) but not to small and medium business owners with commercial properties. That’s why they need a third party like the experts at CLR working on your behalf to workout your discount note with the banks.

Technorati Tags: commercial loan modification, commercial loan review, commercial loan workout, commercial loss mitigation, TARP, Troubled Asset Relief Program

Avoid Bankruptcy Commercial Loan Troubles Can Be Solved

CLR Staff — Thu, 20 Jan 2011 18:59:51 +0000

People these days are definitely not in a great place when it comes to getting through the economic down turn. A lot of companies are finding that they need help because in order to avoid an almost guaranteed bankruptcy commercial loan changes are going to have to be made for them. They may not understand what all of their rights are and what they can do to get a better deal on the loan so it is definitely crucial that they do what they can to learn more about what can help them. Most companies out there can do a variety of things to get their loans reworked in their favor if they turn to the right kind of service for help, but many more companies have no idea that such a service might exist in the first place. The key goal here is to find a deal that can fix things easily.

Borrowers in a commercial lending situation almost always need good advice to get them through. This is why expert advice in the form of a professional commercial loan review can be such a huge help to so many companies. Choosing this way of approaching the loan can lead to commercial loan workouts that really do solve the problem. It is definitely a smart way to handle problems before they get to be too much to deal with. You can certainly count on them to end up being a smart move if you know what you are doing.

Technorati Tags: avoid bankruptcy, bankruptcy commercial loan, commercial loan review, commercial loan workouts

A Short Payoff Could Be An Easy Solution

CLR Staff — Sun, 16 Jan 2011 16:46:09 +0000

People around the world are still reeling from the recent economic crisis and if you have a company then you understand that it can be tough to deal with things these days, even if they are supposed to be getting better. We all want to have the best on our side and that often means we have to do what we can to get serious help to assist us. When you consider the fact that you could get out of a situation more easily if you had professional advice on the short payoff advantage that helps both lenders and borrowers work out a better deal, you can see why this might be something worth looking into. We all want to be able to get the best, but unless we do what it takes to get that, life can be pretty difficult to handle. Any of us can benefit when we do things the right way. The key is to make sure that we have got the right help.

In today’s world, lenders are going to act in their best interest so borrowers need solid help. A skilled commercial loan review is going to go a very long way towards making things easier to deal with. Many borrowers end up learning that they can gain a lot from the right kind of timely and well thought out commercial loan modification that can help them. If you think this is the way to go, then you will certainly be glad you chose it.

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A Few Things About Commercial Loan Workout Procedures

CLR Staff — Sat, 31 Jul 2010 14:24:27 +0000

Technically speaking, what we’re talking about when we talk about a commercial loan workout is likely to be a modification to prevent foreclosure. And when it comes to modification, practically any loan can actually be modified. What is required is that both parties agree to come to the table to talk and discuss points of the contract that was previously signed and agreed to. Actually, this sounds a lot easier and more straightforward than it actually is. In reality, especially if you’re working with a big box bank, such as any one of those that you see on TV, you’ll find that even getting to the table to discuss this sort of thing can prove to be very problematic, very difficult, and very sort of ambiguous about what the clear path is to get to this point.

And in fact, that might be the hardest thing; harder than the commercial loan review, harder than the internal commercial loan modification proceedings about whether or not to approve certain modifications; harder than all of those things might be actually convincing somebody or some people at the bank to hear you out, hear you and your concerns out. Now, at the very tip of the real estate and financial world, these things are ironed out in very procedural ways. There’s an established legal protocol for this sort of thing. And while hiring an attorney to send to your local bank’s branch and office might not be the best use of your scarce resources at present, there are a few things to draw from this.

Technorati Tags: avoid foreclosure, commercial loan modification, commercial loan review, commercial loan workout

Commercial Loss Mitigation Solution

CLR Staff — Wed, 28 Jul 2010 19:43:41 +0000

The dangers of foreclosures always loom above commercial and residential properties in the United States. In December of 2009, over 3.9 million notices were served on over 2.8 million properties. The tops ten states contributing to these figures with high foreclosure rates were California with 4.75%, Utah with 2.93%, Idaho, 2.72%, Georgia, 2.68%, Michigan, 2.61%, Illinois, 2.50%, and Colorado with 2.37%. During this times of weak economic performance, it is never easy to address a problem of this magnitude. For this very reason, financial institutions and the government are offering viable solutions to keep these commercial properties afloat. One strategy that is also commonly advised to commercial property owners is to go to their lender and negotiate a restructuring of the remaining loan amount. This is one commercial loss mitigation option which can greatly reduce the original mortgage payments but which could mean an extended period of years in order to pay the full amount. Banks and lenders will most likely agree to this strategy rather than a foreclosure. They need to continue with business operations and with commercial properties foreclosed, selling them could be more difficult than before. Before the approval of any loss mitigation procedures, commercial property owners need to undergo a commercial loan review as an assessment guide for banks and lenders on the financial standing of the owner and the property. To help you secure a more favorable restructuring program, look for firms that specializes in commercial properties because an extensive experience is necessary. They can negotiate better terms and conditions in your behalf.

Technorati Tags: commercial loan modification, commercial loan review, commercial loan workout, commercial loss mitigation

Your Commercial Loan Review Checklist and Unprofessional Mistakes

CLR Staff — Mon, 26 Jul 2010 18:28:32 +0000

There are a few things to look over before you meet with your business’s banker for a possible commercial loan modification. But first, you’ve got to sort of psych yourself up for the meeting. It’s an underestimated thing to do, but meditating about these meeting’s issues can really help with your negotiations at the table. Loan reviews often occur during audits as a consequence to what bankers are calling “irregularities” in mortgage and loan applications. What’s happening is that bankers are really seeing no end in sight when it comes to these bad mortgages, and in order to kind of head these things off, they’re really having to do a bit back stepping; they’re going back over the past year’s mortgages and loans, to see if they’ve haphazardly approved folks and businesses that weren’t supposed to be approved, and then, usually, initiating reviews, audits, even modifications at the banker’s request.

So here are a few things to put onto your commercial loan review checklist. To start with, you definitely want to have your books in order. Now everybody talks about having their books in order, and best practices about bookkeeping, but the fact of the matter is, especially with burgeoning commercial real estate developers, the books are quite vague, quite messy, and hardly ever up to snuff when it comes to accounting standards. So those need to be formatted and put into correct order. The last thing you want to do is to have a banker look at a summary sheet, and to see things that are just completely unprofessional or amateur.

Technorati Tags: commercial loan audit, commercial loan modification, commercial loan review, commercial loan review checklist

Commercial Short Sale and Commercial Loan Review

CLR Staff — Thu, 22 Jul 2010 14:10:38 +0000

A commercial short sale is one of the things you can do if you default in your loan. This will prevent your property from being foreclosed which will give you a chance to prevent too much damage on your credit rating although, as the term implies, this will result in the transfer of possession to another person or company. Meanwhile, a commercial loan review is usually done as part of a commercial loan workout. This review is where the borrower hires a specialist to meticulously check the loan’s contract for any violations of certain laws and regulations that have been put in place to protect the rights of borrowers. When the specialist finds indications of such violations, the borrower can make use of this finding to convince the lender to grant a commercial loan modification or approve a short sale in the event that the borrower no longer wants to remain in possession of the property. This is because if such violations are proven in court, the lender would not be able to implement any of the terms, including foreclosure. In addition, the lender may be ordered by the court to return to the borrower all interest charges since the start of the loan. The borrower may also request the lender to approve a short sale in which it is common that the selling price would not be sufficient to repay the outstanding balance completely. In this case, the lender may forgive the unpaid amount and consider it as a loss while the borrower will need to consider it as income for tax purposes.

Technorati Tags: commercial loan modification, commercial loan review, commercial loan workout, commercial short sale

Commercial Loan Review Basics

CLR Staff — Fri, 25 Jun 2010 15:51:13 +0000

A commercial property owner of strip malls, shopping centers, office buildings, multitenant buildings can meet up with a specific bank or creditor for the possibility of a commercial loan modification. These adjustments would normally result into a lessening of the amount due, a temporary period of interest only payments, lessening of the interest rates, an extension of the loan duration, etc. A commercial loan review is needed to be done by the lenders before any of the said adjustments can be approved by the said lenders.

A commercial loan review will involve experts analyzing the information from the financial documents that the borrower is required to submit. It is also necessary that both borrower and lender be involved in the whole process of the loan review so that all the terms can be agreed upon by both parties. Keep in mind though, that financial institutions are usually recommending borrowers to consider loan workouts first because they later on find out that borrowers’ main reason for defaulting on their payments is a temporary inability to pay because of the economy’s financial downturn. It must be noted that several commercial property owners would only need time to regain financial stability while there are others that are in need of permanent changes in order to become stable once more. Either way, the lender would benefit from these situations because they will be able to avoid the costs of foreclosing a property and still be paid by the borrowers although the payments may already be less than the original loan had been.

For the borrowers, another option to avoid foreclosure is to go for commercial short sales but this option would also have a negative impact on the person’s credit standing, although not too much damage as compared to having a foreclosure on their records. In a commercial loan review, the lenders make sure that the business owner is fully capable of making the monthly payments in the event that the loan modifications are granted. Some factors that lenders would take into consideration in determining if the property or business would be a good credit risk is the cash flow trends, payments history, conditions of the market as well as the guarantors.

In the borrower’s point of view, the process of a commercial loan review is quite different. The services or help of a loss mitigation attorney is usually required by the borrowers at this point in order to carefully study all of the details included in the loan agreement that was originally agreed upon. The reason is that there may be certain clause in the original agreement that may not be beneficial to the borrower. In the event that such violations are found, the lender may not be authorized to require the borrower to comply with the provisions of the loan agreement and this can include the clauses that pertain to foreclosure. At the most, a lender may even be required to return previous interests paid by the borrower way back when the loan began. All in all, a commercial loan review enables the borrower to come up with ways to negotiate for better terms on their existing loans.

Technorati Tags: avoid foresclosure, commercial loan modification, commercial loan review, commercial short sales