New York Business Funding - Loan Modification

Commercial Real Estate Loan Modification

With our nation in an economic recession, and with the retail market suffering, tenants on commercial properties are experiencing difficulty paying their rents. As a result, commercial property owners are becoming cash flow negative and defaulting on their mortgages. Banks and commercial lenders cannot keep up with the current number of defaults and want to minimize their losses. Therefore, with hopes of avoiding a pricey foreclosure process, they are willing to restructure the terms of defaulted loans, By modifying a commercial loan properly, a property owner can avoid foreclosure, greatly reduce their monthly payment, and reduce the principal amount owed. Commercial loan modification is a relatively new market and with so many modification possibilities, it's best to consult an expert before beginning the process. Borrowers often find their Bank or commercial lender difficult or unwilling to renogiate the terms of a loan. This is where companies like New York Business Funding comes in. Borrowers find it extremely beneficial to seek the help of the professional representation that New York Business Funding and its partners offer.

How hard is it to modify large commercial properties?

For larger commercial properties such as large retail, office complexes, and manufacturing facilities, the process of commercial loan modification becomes more complicated, but not overwhelming. Borrowers tend to be large corporations and lenders range from individual banks to large securitized real estate trusts. Often times the process is very similar to that of a smaller commercial property just on a larger scale. As with many things, the bigger the objective, the more professional help is needed - that is why many owners of large commercial properties are seeking the assistance of New York Business Funding.

The biggest part of the process is research and analysis. Once all the components of your financial situation are taken into account, the next step is to review your current loan, and consider the options available for your particular situation. We have found that when our clients talk openly and honestly with us about their situation, we can best serve them in the modification process. We work with you during the modification process to get all documents and forms compiled. Once everything is in place and agreed upon, the modification is presented to the bank for approval.

What types of commercial properties can you modify?

A loan modification can be performed on many different commercial properties. For Example:

Condominium and Apartment Complexes
Mobile Home Parks
Malls, Strip centers, and Restaurants
Office Buildings and Complexes
Hotels and Resorts
Industrial and Manufacturing Warehouse Facilities
Land Development
Health Care Facilities
And More!

Do you qualify for a loan modification plan?

The main question a bank or lender will need to answer before renegotiating a loan is: Will the cost of foreclosure be greater than the cost of a loan modification? The lender's decision will be based on their best interests. Your ability to successfully negotiate a plan will depend on many factors. Some of these factors include:

Amount Of Equity In The Property
Past Payment Experience
Costs Of Foreclosure
Borrower's Financial Position
Borrower's Willingness To Retain Property
Local Market Conditions

In addition to these factors, many small commercial loan modification plans will depend on the financial situation of the borrower's business. The lender must feel confident that the commercial property owner will produce enough profit to service the new payment successfully. Regardless of whether the property in question is a single family rental unit, multi-family apartment building, or retail property, your lender will request a business plan. The plan should include realistic numbers and a convincing explanation as to why the restructured plan will work.Be prepared to present a realistic proposal and back it with solid numbers. Consider seeking the services of an accountant, attorney, or experienced loan modification consultant. A negative result could mean the loss of a property and a business.

Many banks have created special legal departments to deal with the protection of their interests. That is why it is so important that you or your company seek the assistance of an outside modification agency like New York Business Funding and its partners to represent you.

New York Business Funding, Inc.

America's Business Funding Source