Is your commercial loan term coming due? Are you upside down on your commercial mortgage? Need to reduce your loan payment?

We have the solution!

Large numbers of businesses are having a hard time affording mortgages on their commercial real estate loans. The overwhelming number of defaults have forced many commercial lenders to start renegotiating the terms of commercial mortgages.

 The business owner needs an advocate; it takes hours, a system, and experienced professionals who know the ins and outs of loss mitigation, special servicing, and special assets departments to effectively help the business property owner obtain a resolution that reaches a benefit-benefit solution for all parties.  

 7/15/2010 Underwater CRE loans are threatening the survival of many smaller banks. So far this year 90 banks have failed on top of the 140 that failed in 2009 and 25 in 2008.

Source: Federal Reserve Bank New York 1st Qtr 2010 Report (Largest BHCs: JPM, BoA, C, WF, USB, BNYM, Cap.1) 

Current conditions are as follows:

• So far CRE prices have fallen 42% overall
• Office vacancy rates are at a 17 year high
• Mall vacancy rates are at a 19 year high
• Hotel loans are delinquent at a rate of 19%
• Apartment loans are delinquent at a rate of 14%
• Retail property loans are delinquent at a rate of 6%
• Industrial property loans are delinquent at a rate of 5.5%
• Office property loans are delinquent at a rate of 5%  

What is a Commercial Loan Modification?

Commercial loan modification is simply the process of restructuring the terms of a commercial loan. It is a matter of renegotiating the loan so that it is more favorable to the borrower.

Some possible solutions can be:

• Extending loan terms.
• Lowering interest rates.
• Avoiding balloon payments.
• Payment Deferment.

As of 10/31/09 the FDIC, Treasury, OTS, OCC, NCAU have adopted guidelines for commercial loan modifications to incentivize the banks that agree to workouts in lieu of foreclosue.

Call or Email Us Today!

The sooner you get your application started the faster you can reduce your loan payment!

The banks will not do it for you, but we will!