Archive for September, 2009

What is Obama’s commercial loan modification plan? This plan is only for the residential marketplace. So, what does a Commercial Property owner do?

Commercial Properties, although not as widely publicized as their younger sibling the residential modification,  still represent a very large market place. More and more commercial notes are coming to fruition and need to be refinanced.

Many commercial loans were cast at the time when the economy was in a much better place. And because not even the best analysts could have imagined the bottom, most banks and private investors were able to loosen their requirements for a commercial property owner to secure a loan. By doing this, they were able to charge higher rates and balloons. What none of these lenders ever imagined is that they would be sitting on all this bad paper. And in an effort to control losses are willing to negotiate the loan on their books. What this means for a commercial property owner is the bank or lender in an effort to avoid for closure is now willing to recast a commercial property owners loan in the hopes that this will allow the property owner to continue to make timely payments and in the long run out live this recession.

Commercial property owners need to take advantage of this bad economy by trying to renegotiate the terms of there loan while, as they say “the iron is still hot!” It is always wise for a property owner to seek the help of a commercial loan broker/ firm to do the renegotiating of your loan. With the right help you could be looking at a substantial decrease in the rate of your loan and the monthly payments. Commercial loan modifications are a great way for a struggling commercial property owner to re adjust their current loan and reduce their monthly payment, thus increase their cash flow.

How to Pursue a Commercial Loan Modification

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.

The IRS has issued a new rule (IRS Revenue Procedure 2009-45 http://www.irs.gov/pub/irs-drop/rp-09-45.pdf) that eases the restrictions on modifications of commercial mortgages that have been packaged into commercial mortgage backed securities.

This action allows borrowers to open discussions with the loan servicer prior to any default in an attempt to work out the loan. Prior to this new rule only a very small number or loans in a servicing pool could be modified and they must already have been in arrears.

Commercial property owners can get a free consultation at: Commercial Loan Modification Experts

Commercial Loan Modification Lingo Part 1

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.

REQUEST YOUR SPECIAL REPORT TODAY: Is a Commercial Loan Modification Right For Me?

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).

What is the Commercial Loan Modification Process?

Do you or someone you know own an apartment building that is under performing? Are you behind on your commercial loan payments? Is the bank threatening a commercial loan foreclosure?
Learn how an apartment building or commercial real estate loan modification can help you save your property.

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 loender 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: Commercial Loan Review 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.

Request your special report Is a Commercial Loan Modification Right for me?.

Good Day Ted;

I have been reading your details on your website, I get excited of going for your course, but I hate to admit this but I have to, About 4 weeks ago I bought another course of buying apartment buildings, I cant say who I bought it from, it stated practically the same as yours, and about the same price, but when I got to download the “course” all it was, was a 24 page reading, it was not what I expected, no tellng me how to start, no telling of who to talk to, no methods of how to actually buy apt.buildings, nothing, I felt very discouraged, scammed, and this person has been into commercial property for 3 decades. I called and asked where is the course, they stated that the whole course would cost $1400, what I downloaded was just a teaser, well thats what I take it as. not to make this into a novel, my question is this, your course is about $100, am I to get what it states on your website or is there going to be a teaser, like the others?
any help would greatly be welcomed

Thank You
Agustin

Hello Augustin,

Thank you for the email. The Buy Your First Apartment Building E-Course gives you all of the information, tools, software and knowledge to buy your first apartment building, even if you have no prior experience. There is nothing else to buy.

Sincerely,

Ted Karsch