This service is available for Commercial Property Owners who are in default or may soon be in default. Have you become frustrated with the response from your lender on your commercial mortgage loan? Is your loan due? Is your property worth less than you owe? Do you need an advocate so you can avoid a bankruptcy situation? Whether your property is not producing the expected income or needs to be transitioned let us help.
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All commercial property types will be considered with preferred loan sizes of $3,000,000 or more. Preference given to the following commercial property types nationwide:
- Healthcare real estate
- Industrial properties
- Busted condos
- Apartment complexes
- Broken construction projects
- Single or multi-tenant commercial properties
Today many commercial property owners are stuck in short-term loans, with high interest rates and large balloon payments. Some are struggling to make their mortgage payments or even facing foreclosures, auctions, and receiverships. Our mission is to assist distressed commercial property owners by helping them obtain a restructuring of their mortgage debt. We help our clients mitigate their debt on commercial properties by aiding them in:
- Reducing Principal and Interest payments
- Extending the term of the loan(s)
- Arrange for Interest only payments
- Arrange short sales
- Suspend payments temporarily
- Pursue forbearance arrangements
What is your best option? It depends on several factors such as the cause of the problem, whether a modification will “work,” your long term goals, and the pros and cons of applying for a commercial mortgage modification.
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Things We Consider When Negotiating
1) What is the Cause of Your Cash flow Problem? Commercial mortgage defaults fall into one of two categories: a) debt service default and b) balloon payment default.
2) Business owners and a commercial borrowers who seek commercial mortgage modification should be able to pin point when their cash flow problem began and whether it was from a) a drop in business, b)an increase in other recurring expenses, c) increased defaults on your own receivables , d) some combination of the above, or some other circumstance. Identifying the cause of the problem will help you and your lender to identify the most fitting solution.
3) The resulting debt service coverage ratio (DSCR) after modification is a calculation of whether the money coming into your business is sufficient to cover the expenses plus the monthly mortgage payments and by how much (or if not, by how much?). A DSCR of over 1 is desired, with a DSCR of below 1 indicating insufficient cash flow. The question the lender is most interested in is, if the loan is modified, will your coverage ratio be high enough to service your debt without default, and is the new proposed ratio sustainable based on your prospects.
Ready to allow the property to change hands Cash is available to bring to the table.
Your solution depends on several factors. These include the cause of the problem, whether a modification will “work,” your long term goals, and the pros and cons of applying for a commercial mortgage modification or if you are ready to change ownership. Enter your information in the contact tab so you can be contacted for an assessment or fill out the form.