All businesses that have bought properties with borrowed money or credit line, or a commercial mortgage that depends on default payments might be closed in a foreclosure action in the courts. The borrowers have many choices and the best part is that all lenders are not very fond of foreclosures, as they are expensive and complicated to handle. But the sad part is that if these lenders are not presented with some better choices, they wouldn’t mind foreclosing on the basis of past loans.
Steps to Stop Foreclosure
There are certain things you can follow in order to put an end to the foreclosure on any commercial property. These are listed below for your better understanding:
- Ask for a loan modification
Get in touch with a commercial lender to identify the loan modification choices available, like keeping the debts at the back end of the loan or a tolerance plan that requires you to make some or no payments for some period in order to handle the back payments. Also find out information on mitigating the interest rates and increasing the time duration of the loan.
- Look for alternative financing options
In order to pay the back loans, find out other sources for funding, like collateral loan or equity. Moreover, look into your retirement plans and consider selling old furniture or equipment.
- Give up the commercial property
Consider the possibility of surrendering the commercial property to the lender in case the back loans cannot be taken care of. This job will get done with the aid of a legal method, known as Deed-in-Lieu of foreclosure. You can hire a loan modification lawyer for a loan modification restoration or a loan modification tester for a loan modification inspection.
- Speculate the bankruptcy protection option
In order to file for bankruptcy, look for an attorney. You can look for federal protection of the bankruptcy code under the chapters 7,11,12 and 13. Many loan modification companies will give you loan modification help in terms of loan modification options.