If you are planning for a commercial mortgage renegotiation because the income from your strip mall, warehouse, office building, shopping center, apartment building and other similar properties has declined and you cannot catch up with the payments, a commercial loan review can facilitate the process for you.
In this process, a third party who is an expert in these matters is often hired to analyze your position and prepare for the negotiations with the bank.
One of the commercial loan review steps to be taken in preparation for a prudent loan workout is to examine the original mortgage documents and determine if the lender had taken shortcuts that violated certain laws.
This can be used as leverage in the negotiations because if there are any violations, these prevent the lender from applying any provision, including foreclosure.
In fact, even if the foreclosure process has already been initiated, the court will order the bank to suspend the proceedings until such time that a decision on the issue has been made.
The review will also include an examination of the situation of the borrower to determine the best way to convince the lender to make adjustments to the mortgage.
These changes may include a reduction in the interest rate that may be permanent or temporary, an extension of the term to reduce the monthly payments, or even a temporary suspension of payments.
These modifications are all designed to avoid foreclosure, which the bank also wants to prevent because it is a costly process.