Commercial Modification » commercial property loan http://commercial-modification.com/commercial_modification_blog Commercial Loan Workouts, Commercial Loan Modifications and Commercial Short Sales Sat, 31 Jul 2010 14:24:27 +0000 http://wordpress.org/?v=2.8.5 en hourly 1 Commercial Short Sales and Residential Short Sales – The Differences http://commercial-modification.com/commercial_modification_blog/commercial-short-sales-and-residential-short-sales-the-differences/ http://commercial-modification.com/commercial_modification_blog/commercial-short-sales-and-residential-short-sales-the-differences/#comments Fri, 14 May 2010 20:03:43 +0000 admin http://commercial-modification.com/commercial_modification_blog/?p=491 A commercial short sale and residential short sale does share a few basic principles. However, they also differ greatly on a few aspects. Primary difference is the time frame. Unlike a commercial short sale, residential or home short sales can take several years before it gets approved. On the other hand, commercial properties can be processed in just a few several weeks to months. This is the major advantage gained by commercial owners over home owners. Usually, a week or two is all it takes for a mortgage holder to accept or decline the offer once it is presented and the deposit amount is settled. It’s not common among buyers to spend a great deal of money for the deposit.
Apart from these, another difference between commercial short sales and residential short sales is that there is no official documentation with the commercial ones. It depends on the situation when it comes to the consideration of the necessary documents at the very least. This is because when a large amount of debt or loan becomes unable to function, this will cause awareness and precautionary on the lender’s side. The terms are not solid and can be modified whenever needed. Residential short sales demand that the property trader will not gain anything from the income. As for the commercial short sales, it is possible to have the note by purchasing it and with a discount. It’s a rare case that a bank will trade an individual home notice to a sponsor or investor at a discounted price. Nevertheless, this is possible by using a commercial note. This will allow you to restructure the charges in order for you to have a substantial income in your business to fund the required payments. With the help of a commercial loan workout officer, you may be able to evaluate the matters at hand and come up with favorable terms.

A commercial short sale and residential short sale does share a few basic principles. However, they also differ greatly on a few aspects. Primary difference is the time frame. Unlike a commercial short sale, residential or home short sales can take several years before it gets approved. On the other hand, commercial properties can be processed in just a few several weeks to months. This is the major advantage gained by commercial owners over home owners. Usually, a week or two is all it takes for a mortgage holder to accept or decline the offer once it is presented and the deposit amount is settled. It’s not common among buyers to spend a great deal of money for the deposit.

Apart from these, another difference between commercial short sales and residential short sales is that there is no official documentation with the commercial ones. It depends on the situation when it comes to the consideration of the necessary documents at the very least. This is because when a large amount of commercial property loan becomes unable to function, this will cause awareness and precautionary on the lender’s side. The terms are not solid and can be modified whenever needed.

Residential short sales demand that the property trader will not gain anything from the income. As for the commercial short sales, it is possible to have the note by purchasing it and with a discount. It’s a rare case that a bank will trade an individual home notice to a sponsor or investor at a discounted price. Nevertheless, this is possible by using a commercial note. This will allow you to restructure the charges in order for you to have a substantial income in your business to fund the required payments. With the help of a commercial loan workout officer, you may be able to evaluate the matters at hand and come up with favorable terms.

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]]> http://commercial-modification.com/commercial_modification_blog/commercial-short-sales-and-residential-short-sales-the-differences/feed/ 0 Now Is The Time To Pursue Warehouse Loan Modifications http://commercial-modification.com/commercial_modification_blog/now-is-the-time-to-pursue-warehouse-loan-modifications/ http://commercial-modification.com/commercial_modification_blog/now-is-the-time-to-pursue-warehouse-loan-modifications/#comments Mon, 28 Dec 2009 22:42:43 +0000 admin http://commercial-modification.com/commercial_modification_blog/?p=259 Warehouse loan modifications are needed more than ever. Commercial loan modification is a must for property owners who are experiencing mortgage problems. Commercial property includes warehouses, shopping centers, strip malls, office buildings, apartment complexes and many more. Because of the current economic stress that the world is experiencing at the moment, commercial foreclosures may follow suit. The best solution to the problem is to restructure commercial real estate loans as soon as possible. This possibility is not only beneficial to the borrower, but also to the lender. Warehouse owners should be able to seek warehouse loan modifications at the soonest possible time in order to avoid the possibility of foreclosure.

In places where the economic situation is at a down low, commercial properties are seen to be losing tenants. Even warehouses and other industrial properties are obviously out of stock. If a borrower is at default, the lender’s usual reaction would be to seek a Notice of Default and initiate the foreclosure proceedings. However, under the economic stress, this solution may not be the best to take. Moving to foreclose properties will do nothing to improve cash flow. This will, in turn, cripple the already stressed economy. Warehouse loan modifications and other commercial loan modifications can help improve the whole situation.

Loan modifications can decrease interest rates, extend loan terms, and even decrease overall commercial mortgage payment. This will make the loan more affordable to the borrower. Warehouse loan modifications should be sought after now more than ever.

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]]> http://commercial-modification.com/commercial_modification_blog/now-is-the-time-to-pursue-warehouse-loan-modifications/feed/ 0 Commercial Short Sales – The Last Hope For Borrowers http://commercial-modification.com/commercial_modification_blog/commercial-short-sales-%e2%80%93-the-last-hope-for-borrowers/ http://commercial-modification.com/commercial_modification_blog/commercial-short-sales-%e2%80%93-the-last-hope-for-borrowers/#comments Sun, 20 Dec 2009 03:31:12 +0000 admin http://commercial-modification.com/commercial_modification_blog/?p=232 Commercial short sales may be a borrower’s last chance to avoid a property foreclosure. When you are in default of mortgage payments, there are a couple of options left for you to utilize to avoid having your commercial property foreclosed. Commercial loan modification is one of the most effective strategies to save your property. However, you need to be able to qualify for a commercial loan modification before you can make negotiations with your lender. If nothing left is there to choose from, commercial short sales can help you avoid staining your credit history with the incidence of a foreclosure.

Commercial short sales require both the lender and the borrower to come to an agreement before the sale becomes final. When a lender agrees, the borrower can sell the property at a price lower than the actual debt amount. This means that the lender is granting the borrower a discount. A borrower can make use of an agent to sell the property. After the property is sold, the borrower turns the sales proceeds to the lender in order to settle the loan. After a successful sale, the borrower’s obligation to the lender is thus fulfilled without having to undergo the process of foreclosure.

Commercial loans are not easy to pay off due to the complexity and nature these loans. Under today’s economic stress, lenders should be able to negotiate with borrowers who are in default. Commercial short sales should only be resorted to if no other solutions are available.

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]]> http://commercial-modification.com/commercial_modification_blog/commercial-short-sales-%e2%80%93-the-last-hope-for-borrowers/feed/ 0 Commercial Loan Modifications are the Best Solutions for Lenders http://commercial-modification.com/commercial_modification_blog/commercial-loan-modifications-are-the-best-solutions-for-lenders/ http://commercial-modification.com/commercial_modification_blog/commercial-loan-modifications-are-the-best-solutions-for-lenders/#comments Thu, 25 Jun 2009 03:15:04 +0000 Melanie http://commercial-modification.com/commercial_modification_blog/?p=69 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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]]> http://commercial-modification.com/commercial_modification_blog/commercial-loan-modifications-are-the-best-solutions-for-lenders/feed/ 0 When to Pursue a Commercial Loan Modification http://commercial-modification.com/commercial_modification_blog/when-to-pursue-a-commercial-loan-modification/ http://commercial-modification.com/commercial_modification_blog/when-to-pursue-a-commercial-loan-modification/#comments Wed, 17 Jun 2009 04:01:45 +0000 Melanie http://commercial-modification.com/commercial_modification_blog/?p=57 A commercial loan modification is when the bank or commercial lender agrees to alter or modify the conditions of your commercial loan to make the monthly payments more affordable. This is done through the lower of the interest rate, extending the life of the loan, lowering the amount of principal owed or temporarily accepting interest-only payments. Commercial loan workouts are designed to be a permanent solution opposed to a temporary fix, only delaying the inevitable. For that reason, in order to be approved for a commercial loan modification, your bank or commercial lender needs to be confidant you will adhere to the new loan agreement.

The best way to convince your bank or commercial lender to agree to a commercial loan workout is to attack the problem right away. As soon as you realize your business is in serious financial trouble, you need to contact a commercial loan modification professional to look over your loan agreement and contact your lender. It is best to pursue a commercial loan modification before you begin missing payments. A bad payment history will not work in your favor when the lender is considering your commercial loan workout. However, unless your business is already foreclosed on, it is not to late to try a commercial loan modification.

Commercial loan modifications take time to negotiate and work out, not to mention taking the time to make sure you qualify for a commercial loan workout. Although it is not impossible, waiting until you are several months behind in payments to pursue a commercial loan modification will make it harder for your commercial loan modification professional to find a resolution you can afford and the lender will agree to.

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