Commercial Modification » foreclosure

J.P. Morgan’s Commercial Real Estate Head On Lending

CLR Staff — Wed, 13 Apr 2011 19:46:49 +0000

J.P. Morgan Chase commercial-banking head, Todd Maclin who saved the bank from the commercial real-estate collapse by cutting back on lending while competitors made continued to loan. Maclin now advised J.P. Morgan to lend again to commercial real estate owners. Demand for new loans are on the rise. While much of the competition still can’t stomach the idea of making new investments.

- From 2005 to 2009, national outstanding commercial real-estate loans grew 55% to over $1.7 trillion

- From 2004 to 2007, the commercial bank slashed its real-estate exposure from about $20 billion to about $7 billion.

- With a 33% of all outstanding loans, nearly $1 trillion, coming due in the next 2 years, strong banks will get more opportunities.

VIA: Fox Business

Technorati Tags: Commercial Relief, Discounted Note Workout, foreclosure, J.P. Morgan, Real Estate, Refinancing Commercial Properties

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

Importance of a Commercial Loan Modification for an Apartment Building Owner

CLR Staff — Fri, 04 Jun 2010 12:46:24 +0000

A commercial loan modification is one of the options for a distressed apartment building owner who is aware of the potential threat of a foreclosure. One of the unfortunate consequences of the economic slowdown is an increase in vacancy rates as workers lose their jobs and move to other locations in search of employment. Another saddening effect of the downtrend in the economy are tenants who are no longer able to afford the rent. Troubled owners usually contact their bank to ask for an adjustment in their payment schedule but they are usually turned down because these financial institutions may also get into trouble if their cash inflow is reduced.

Many owners are unaware of the possibility of obtaining an apartment loan modification after their refinance applications are rejected by the banks. Luckily, it is possible to persuade the lenders to change their view of the situation if the owners are able to present the necessary documents that will prove that a commercial loan modification agreement would be a better alternative for both the bank and the owner compared to a foreclosure. The property owners can actually negotiate with the banks directly but it is also possible to hire an expert on negotiations for the restructuring of commercial debt.

It has been predicted by experts that the next real estate bubble that will burst after the housing market disaster would be in the commercial property market. This is bad news for both banks and property owners because it means that there would be a rush of applications for a commercial loan modification and this is expected to cause a significant drop in the monthly income of the lenders. On the other hand, it may also be good news for the borrowers because the market could be flooded by foreclosed commercial properties. This means that banks would find it very difficult to sell foreclosed assets.

It is usually beneficial to hire a third party to conduct the negotiations with the lender. They will normally send an expert to examine the loan documents to look for ways to strengthen the position of the borrower in the negotiating table. Meanwhile, another possible option if the owner is willing to part with the property is the short sale. In a short sale commercial properties are sold at a price much lower than market value. Usually, the lender has to approve this transaction because the price is likely to be less than the loan balance.

Technorati Tags: apartment loan modification, commercial loan modification, commercial loan modification agreement, foreclosure, short sale commercial

Industrial Loan Modification And Its Effects

CLR Staff — Sat, 26 Dec 2009 23:21:31 +0000

An industrial loan modification is a good option for borrowers who own industrial property on the brink of foreclosure. Industrial properties include office buildings, warehouses, apartment complexes, strip malls, and many more. Commercial loan modification is needed now more than ever. With the foreseen trend in commercial property foreclosure, lenders are advised to work with borrowers who are unable to make up to date payments. As a requirement, borrowers also need to pass a commercial loan review in order to qualify. A commercial loan audit may also be necessary to check if the original loan contract contains no violations of federal or state laws. As long as lenders and borrowers work hand in hand to bring about a successful loan modification industrial, both parties may enjoy the benefits.

In order for a borrower to qualify for an industrial loan modification, he must be able to pass the loan review conducted by a financial expert. Modifications on the original loan term will be of no use if the borrower is examined to be unfit for a modification. This means that he may no longer have the ability to pay for the loan even if a modification on the loan terms is successful. In addition, an auditor may also audit the original loan term to check if the loan contract is valid. If the loan contract is valid, a loan modification can ensue.

A successful loan modification industrial can bring about reduced interest rates and monthly payments, as well as the extension of the term of the loan.

Technorati Tags: comemrcial property, commercial loan foreclosure, commercial loan modification, Commercial Loan Modification Professional, foreclosure

One More Reason to Hire a Commercial Loan Modification Professional

CLR Staff — Sat, 07 Nov 2009 02:16:42 +0000

Attempting to obtain a commercial loan modification agreement from your bank or lender is a job best left to a commercial loan modification professional. Although you are legally able to pursue it on your own, it would be similar to acting as your own legal councel in court. You will not only be unequipped with the needed knowledge and experience to obtain a commercial loan modification, but you will be negotiating with a commercial loan modification professional hired by your bank or commercial lender. Their goal will be to reach a resolution that is in the best interest of their employer. The commercial loan modification professionals you would be up against will be well educated and experienced. The only way to even the playing field will be to arm yourself with your own commercial loan modification professional. Research indicates that 80% of individuals who pursue a commercial loan modification without a commercial loan modification professional fail.

In addition to the above described reasons for not attempting a commercial loan modification on your own, only a trained loan auditor is able to perform a forensic audit. When you hire a commercial loan workout professional, performing a forensic audit to see if your lender violated any state or federal lending regulations is part of the package. The results of a forensic audit can be all you will need to force the lender into a commercial loan workout, which is fully in your favor. Not having that valuable information can lead to long negotiations resulting in a dead end.

Technorati Tags: apartment buidling, bankruptcy, commercial loan modification, commercial loan workout, Commercial workout, commerical loan, foreclosure, forensic audit, interest only, property loan

Ensuring a Commercial Loan Modification with a Forensic Audit

CLR Staff — Tue, 30 Jun 2009 03:53:47 +0000

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.

Technorati Tags: apartment building, bankruptcy, comemrcial property, commercial loan, commercial loan modification, commercial loan workout, Commercial workout, foreclosure, forensic audit, interest only, loss mitigation, property foreclosure, refinance

What is the Commercial Loan Modification Process?

CLR Staff — Fri, 26 Jun 2009 16:41:34 +0000

When you hire a commercial loan modification professional, it is important to know what to expect. The first step is to go through a consultation and analysis. The commercial loan workout professional will look over your loan papers. They assess your business’ financial situation, and they will explain what they can do for you. In order to get a commercial loan modification, you must qualify with the lender for the new loan agreement. Your commercial loan workout professional will pre-qualify you based on the information you provide them.

Once your commercial loan modification professional pre-qualifies you for the commercial loan modification, they will go to the bank or commercial lender to make sure you are officially qualified. Simply put, they will make sure the lender is willing to discuss options pertaining to your current commercial loan agreement. After you are qualified the negotiations begin.

During the negotiation process, your commercial loan modification professional will represent you and work to get you the best possible commercial loan workout. The commercial loan modification professional may be able to negotiate a better interest rate, an extension on the life of your loan, or possibly lowering the principal amount still owed on the commercial loan. The commercial loan modification professionals at: http://commercial-modification.com will not back down. They will reach a commercial loan modification agreement or you have a money back guarantee. Finally, the negotiations will result in the final modification or restructuring of the loan. A new loan agreement will be written up, and you will sign it agreeing to the new loan. Once the papers are signed and processed the new terms of the loan go into affect.

Technorati Tags: apartment buildings, bankruptcy, commercial loan, commercial loan modification, commercial loan workout, Commercial property, Commercial workout, foreclosure, interst-only, loan foreclosure, refinance, rental property

Commercial Loan Modifications are a Relief in 2009

CLR Staff — Fri, 26 Jun 2009 16:29:33 +0000

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.

Technorati Tags: apartment building, bankruptcy, commercial loan, commercial loan foreclosure, commercial loan modification, commercial loan workout, Commercial property, Commercial workout, foreclosure, interst-only, office building, refiannce

Commercial Loan Modification Lingo Part 1

CLR Staff — Thu, 25 Jun 2009 03:28:13 +0000

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).

Technorati Tags: apartment building, bankruptcy, commercial loan, commercial loan modification, commercial loan workout, commercial property loans, Commercial workout, foreclosure, forensic audit, interest only, loan foreclosure, refinance, RESPA, TILA

Commercial Loan Modifications are the Best Solutions for Lenders

CLR Staff — Thu, 25 Jun 2009 03:15:04 +0000

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.

Technorati Tags: apartment building, bankruptcy, commercial loan, commercial loan modification, commercial loan workout, Commercial property, commercial property loan, Commercial workout, foreclosure, interest only, lender, loan foreclosure, refinance