Archive for the ‘commercial loan modification’ Category

The Secret to Being Approved for a Business Loan Modification

Friday, June 18th, 2010

When a business owner faces the foreclosure of their business loan, a business 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 how good these deals may sound, the assistance they offer is minimal, and they often just repackage information the business owner could just as easily obtain for free.

The real secret to being approved for a business loan modification is hiring a professional.  Not just a consultant or an expert, but a legal professional, a local licensed attorney with verifiable experience and legitimate references.   

Some business owners may think that they have the time or the resources to successfully negotiate a business loan modification on their own, but this is rarely the case.  Those that do have the time and resources to act on their own behalf often lack the legal knowledge to survive toe to toe against well paid lender negotiators and lender attorneys. 

Experts and consultants, even the few who are legitimate, are very limited in the services that they can provide.  Even if they are able to negotiate a loan modification successfully, they will not usually be able to get as good of a rate as an attorney because they lack the legal knowledge necessary to compel the lender to offer the best deal possible.  Experts and consultants cannot represent the borrower in legal proceedings and can’t even act on behalf of the borrower to file the necessary documents to initiate legal proceedings.  Lenders know this and they will take advantage of the lack of legal knowledge and authority as much as they can in order to hang on to as much money as they can.

An experienced foreclosure attorney is the best way to go for business owners facing foreclosure.  Attorneys are held to very high standards, both professionally and ethically, and they can assist the borrower through every step of the negotiations.  Paying for a service that provides anything less than what an attorney can offer is a potential waste of money and at this stage in the process, a loss of money is the last thing the business owner needs.

It could be argued that the real secret to being awarded a business is that there is no secret.  Everything a person needs to learn about the process is available for free, either on the web or through legal aid networks.  Most attorneys even offer free consultations to individuals with specific questions to determine whether or not they would be able to help the person modify their loan. 

Despite what the Internet advertisements say, there is no substitute for hiring a legal professional to handle the modification process.  The borrower could try to find a cheap and easy quick fix to their problem, but chances are they won’t like the results. 

If they are, leaving the service completely is probably a more biting protest than signing a name on a petition

When Should I Seek Commercial Loan Modification Assistance?

Wednesday, June 16th, 2010

Many of the same financial problems facing homeowners in America are also facing private business operators.  With the economy still in a slump, many business owners have to deal with the thought of facing foreclosure.  While the financial trouble and possible solutions for avoiding foreclosure are similar for businesses and homeowners, the stress involved for the business owner will often be doubled than for the average homeowner.  Business owners are often placed under more stress than homeowners because many businesses tie their personal assets to their professional ones, as would be the case if a business owner took out a second mortgage on his or her home in order to raise the capital needed to launch a new business.  When a business faces foreclosure, the personal life and assets of the business owner are also put at risk.  Not only could the business owner stand to lose their property, they could also lose the way of life they have grown accustomed to after years of being their own boss. 

This is, of course, only a general illustration of a worst case scenario, but still very possible if certain circumstances exist.

A business owner facing foreclosure should waste no time getting professional commercial assistance.  The procedure for negotiating a loan modification for commercial property is similar to the procedure for negotiating a loan modification for residential property.  The business owner will have to submit personal financial information and a hardship letter along with any other application papers the lender wants. 

When shopping for a commercial assistance service, the business owner in distress would be wise to hire a traditional law firm specializing in matters of foreclosure.  This will allow all services that the business owner needs to be provided by the same firm, rather than having to hire one firm to conduct a mortgage contract audit, another firm to conduct the negotiations, and yet another firm to represent the business owner in court should the lender refuse to negotiate or reach a fair agreement. 

Hiring an attorney who can handle all aspects of foreclosure avoidance for the business owner will also allow the business owner to work on running their business, since every minute that the business owners spends not making a profit is another minute closer to foreclosure.  Many business owners don’t like the idea of a foreclosure, but they like the idea of not being able to run their business even less. 

Most business owners are not experts in real estate or mortgage law, which is why it is often better to hire an experienced attorney rather than trying to run the business, negotiate with lenders, and fight foreclosure in court (if it gets that far).

With all of that in mind, the business owner should begin seeking commercial loan modification assistance from an experienced attorney as soon as foreclosure becomes a concern.  It makes no difference whether or not the loan is in default, if the business owner can take steps to modify their commercial loan prior to it falling in default, they will find themselves in a much better financial position down the road. 

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