Commercial Modification » commercial loan workout

The Economic Recession and Commercial Property

CLR Staff — Fri, 01 Apr 2011 18:39:42 +0000

With our nation in an economic recession, and the retail market suffering, tenants in commercial properties are experiencing difficulty paying their rent. As a result, commercial property owners are becoming cash flow negative and defaulting on their mortgages. Banks and commercial lenders cannot keep up with the current number of defaults and want to minimize their losses. With hopes of avoiding a pricey foreclosure process, they are willing to restructure the terms of defaulted loans, By modifying a commercial loan properly, a property owner can avoid foreclosure, greatly reduce their monthly payment, and reduce the principal amount owed. Commercial loan modification is a relatively new market and with so many modification possibilities, it’s best to consult an expert before beginning the process. Borrowers often find their bank or commercial lender difficult or unwilling to renogiate the terms of a loan. This is where companies like CLR come in. Borrowers find it extremely beneficial to seek the help of the professional representation that Commercial Loan Review offers.

Technorati Tags: Apartments Modification, CMBS Loans, commercial loan workout, foreclosure, Real Estate, short sales, Strip Mall, Warehouse Modification

Understand That Your Situation is Common

CLR Staff — Mon, 28 Feb 2011 19:09:08 +0000

With an increasing number of commercial loan defaults, property owners are frantically seeking a solution to their financial crisis. The team at CLR is here to help! with a series of tip and tricks for commercial property owners facing hardships.

Banks are being flooded with requests for modification of loan terms. While they need to do something to keep a loan performing (or better get it off the books), they don’t have the time to develop every case properly. Those who walk in to their asset manager’s office with a complete package supported by data will get the strongest consideration.

Technorati Tags: avoid foreclosure, commercial forensic loan audit, commercial loan blog, commercial loan workout

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

Get A Commercial Loan Workout To Help You Now

CLR Staff — Tue, 01 Feb 2011 16:18:37 +0000

So many companies today are in dire straits because they do not have the kind of information they are going to need in order to get things to work out for them. If you are hoping to have a much better chance at getting the sort of solution that will not risk your company, you need to know that if you choose a commercial loan Workout and you have the right kind of legal help to do it the right way, things can be a whole lot easier for you. It is certainly going to be simple to get the best value if you do things the right way. What you want more than anything is to make sure that you are being smart about how you approach things. If you are looking for a serious, well thought out way to a commercial refinance agreement then you are going to want to find quality help. Expert legal advice is available to make sure the lenders do not work the deal out only in their favor.

You need help with these kinds of situations simply because the lender is going to go for the kind of arrangement that is most beneficial to them, naturally. This is nothing insidious, but if you want the deal to work for you, then you need advice on whether or not a short sale is a good option. Choosing the best legal team is going to make a huge difference in the long run for your company.

Technorati Tags: commercial loan workout, commercial refinance, commercial short sale, short sale

Commercial Refinance Can Save A Property

CLR Staff — Fri, 14 Jan 2011 14:44:08 +0000

Being able to have options is one of the most comforting things possible if you ever find yourself in a tricky situation. What you want to be able to do is find a good solution to your problems that is going to help you out in a big way. When you check out what you can gain if you get the right kind of commercial refinance deal, you can see that borrowers really can benefit from this kind of solution that is designed to help them. When you get a good deal that works out in your favor, everything else is a great deal easier. You can certainly rest easy when you find out that a good commercial loan Workout can help you. You never need to suffer through bad terms and an even bigger loss if you take the time to seek out professional advice from an experienced legal team who knows how to do what it takes to help you.

There are a lot of things you can do to make sure that the lenders are not the only ones who benefit from any kind of changes that must take place with your loan. When you know what you are doing because the right team’s helping, commercial short sales are a big possibility that can end up saving you quite a bit of stress. This is a great solution, but to make sure you get the best deal, get yourself some qualified help first to make things easier.

Technorati Tags: commercial loan workout, commercial refinance, commercial short sales

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

The Mechanics of the Short Sale Commercial Properties May Need

CLR Staff — Fri, 30 Jul 2010 15:02:13 +0000

It’s hard to generalize in general, let alone generalize about the real estate market, which is inherently a unique, specific, and very local thing. What might fly in terms of property specifications in one part of town, may not fly in another part of town. Why this is has to do with one thing: individual psychology. It’s almost as random and predictable as high school student politics in between classes in the hall. But for those that have the taste for this sort of work, for this vocation, then there are tremendous rewards. One way people are making this ever problematic market work out is through the pursuit of the short sale commercial properties may need. When you sell something short, what you do is you agree to return a piece of property to somebody or some company (usually a bank), at some specific time. People are most familiar with short selling within context of financial instruments, and really, in the real estate context, shorting really isn’t that much different. In fact, there’s a financial document at the center of it: the commercial short sale contract.

See, what happens is that banks will want to hold onto properties, instead of getting into a commercial loan workout discussion with folks. They don’t want to devalue properties that are on their books. So what they do is they have the property open to short selling. A broker goes into a bank, tells the broker that he has a seller; the broker sells the property at a high price, then buys back when the market continues to tank at a lower price, then returns the property.

Technorati Tags: avoid foreclosure, commercial loan workout, commercial short sale, short sale commercial

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

Apartment Loan Modification Program

CLR Staff — Fri, 23 Jul 2010 18:36:22 +0000

Property investments are lucrative but risky. Owning an apartment, for example, can bring in the income that will use for payment of real property taxes and other expenses. But this is on the premise that all the rooms in your apartment building are all occupied. What if only half of these are occupied and the other half remains idle for months? The number of idle months translates to the number of times you may need to shell out more from your pocket to pay for the expenses than what the building churns out for you. The global financial meltdown has immensely affected home and commercial property owners. Many were not able to update their premium payments and were left homeless. For commercial properties, like apartment buildings, the value of the building may not even be enough to cover for the minimum expenses. Foreclosures were made here and there on homes while businesses struggle to make up for the losses. In this case, you need to consult with a commercial loan workout specialist so that you can make an informed decision regarding your next move.

Financial institutions may be able come up with an apartment loan modification program specifically made to help you out on your situation. To site an example, you bought a 200 unit apartment building for $10 million and your mortgage payment is at $120,000 a month. Then here comes the crisis and your occupancy rate drops from 95% to 45%. Filling in the gaps brought about by a poor performing economy is too much considering you may need to pay more than half to make up for the lost income. But if you apply for a commercial loan modification program, this can bring in the much-needed resources to continue your business operations.

Technorati Tags: apartment loan modification, avoid foreclosure, commercial loan modification, commercial loan workout, commercial loan workout specialist

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