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Posts tagged 'Commercial Loan Modification'
Written by: Timothy McFarlin | Publish date: November 12th, 2010
Bank of America commercial loan modification “in-house” programs offer a variety exciting promises to commercial building owners. Unfortunately, these promises rarely carry through to the real world. In most cases, a Bank of America commercial loan modification is much like Santa Claus or the Easter Bunny…a well organized fantasy. Challenges with Bank of America Commercial Loan Modification Negotiating a loan modification with Bank of America on a commercial or non-residential loan can be quite time consuming and frustrating. There are not presently any type of government directives or institutional pressure on banks, such as Bank of America, to modify commercial [...]
Written by: Timothy McFarlin | Publish date: November 2nd, 2010
The difference between residential and commercial loan modification can be best understood by thinking of the differences between residential and commercial loans in general. Residential loans and commercial loans are typically originated for the same purpose (to buy or refinance property). However, the similarities in loan structure do not translate into similarities with loan modification itself. The biggest difference being the favorable government directed loan modification programs do not typically apply to commercial loans. Challenges with Commercial Loan Modification Commercial loan modification is generally much more challenging than residential loan modifications. As a commercial building owner, when considering a commercial [...]
Written by: Timothy McFarlin | Publish date: June 28th, 2010
When businesses face foreclosure, a commercial loan modification service often offers a way out. Many of these services offer to negotiate with lenders, review mortgage documents, and to offer general assistance in avoiding foreclosure. While many of these services are run by honest business people, many still are not. A business person on the verge of foreclosure doesn’t have time to waste with what might be a potential scam. The business person must make an honest assessment of the services they will pay for before handing over their hard earned (and often dwindling supply) of money. Many of the services [...]
Written by: Timothy McFarlin | Publish date: June 21st, 2010
A commercial building loan is to a business owner as a mortgage loan is to a homeowner. A foreclosure, on the other hand, is exactly the same no matter which way you slice it. A foreclosure, in laymen’s terms, is simply the repossession of collateral in the event that a loan falls into default. Homeowners that fall into default face the repossession of their home, while business owners that fall into default on commercial property loans face the repossession of their commercial property. There are several options available to the business owner to avoid foreclosure should they ever have trouble [...]
Written by: Timothy McFarlin | Publish date: June 21st, 2010
Starting a business takes a huge amount of courage, determination, and risk. Studies have shown that most business fail within their first few years of existence. Still, thousands of Americans continue to pursue the dream of owning their own business year after year, despite the risks. When financial trouble presents itself, the business owner has two options, sink or swim. They may decide to call it quits and close up shop, or they may decide to stick it out and fight to keep their doors open. Only the latter has the best chance at not becoming another failed business statistic. [...]
Written by: Timothy McFarlin | Publish date: June 18th, 2010
These troubling economic times have many business owners wondering if their businesses will be able to survive in the face of foreclosure. One of the most popular tactics that businesses are using to avoid foreclosure of their business loans is loan modification. Loan modification is an agreement between borrower and lender to modify the terms of an existing mortgage contract with the intent of lowering the monthly payments for the borrower. Some loan modifications are temporary and others are permanent. Different lenders offer different options, so the borrower will have to consult their lender to determine what kinds of plans [...]
Written by: Timothy McFarlin | Publish date: June 18th, 2010
When a business owner’s Wells Fargo commercial loan falls into default, foreclosure becomes a very real threat to the business, to the business owner, and to any person depending on the success of both. Loan modifications for real estate loans have grown in popularity since the collapse of the housing market in 2007, but they are just as helpful for business owners seeking commercial loan modifications. The hardest part about being approved for a loan modification is getting the entire process done in enough time to help the borrower. Lenders are notorious for dragging their feet through the process, in [...]
Written by: Timothy McFarlin | Publish date: June 18th, 2010
When a business owner faces the foreclosure of their business loan, a business loan modification may be just the fix to keep the doors to the business open. A business loan modification will allow the borrower to pay a lower, often fixed, monthly payment. An Internet search for business loan modification assistance will reveal thousands upon thousands of deals and bargains aimed at desperate business owners offering assistance. In many cases, all the business owner needs to do to save their business is order some kit or package promising to reverse their financial trouble with a single mouse click. Despite [...]
Written by: Timothy McFarlin | Publish date: June 17th, 2010
When President Obama instituted the Making Home Affordable Program to help the massive number of homeowners facing foreclosure, many held high hopes. Unfortunately, the program has failed to save as many homes as originally expected. On the other hand, there are several families who have been able to stay in their homes because of the Making Home Affordable Program, leaving many to wonder if a version of Making Home Affordable exists for commercial borrowers. While there is no commercial equivalent to the Making Home Affordable Program, the government does offer several funding programs for small businesses and certain qualifying organizations, [...]
Written by: Timothy McFarlin | Publish date: June 17th, 2010
Commercial loan modification experts, also referred to as commercial loan modification consultants, are generally non-attorney individuals who claim that they can offer assistance in getting commercial loans modified. While many of these experts or consultants are legitimate, many have been found to be scammers, and should therefore be approached with caution. A business owner facing foreclosure is often in a very desperate state of mind, willing to pay for services that sound like they will be able to keep the business owner out of foreclosure. The business owner, however, must be just as cautious as the homeowner facing foreclosure. Caution [...]
