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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