CommercialLeads.net - (www.commercialleads.net) Commercial Loan Modification Basics

Updated: March 01, 2010

83 Billion Dollars in Commercial Loans are in default now with more than one trillion coming due through 2010. If and when CMBS (commercial mortgage backed securities) come back online the rules will be different and it will take time for the market to adjust.

The need to restructure or modify commercial loans will continue to increase putting pressure on both lenders and the government to save trillions in loans that are coming due.

Contacting the lender or a modification specialist. When making contact with either there are several documents you should have ready.

1. Updated PFS (personal financial statement)
2. Updated I/E (Income and Expense Report)
3. Updated Rent Roll
4. Current Mortgage Statement
5. Commercial Loan Modification is possible and can be done so that the lender and property owner benefit but must be approached as a business solution not a favor. If you come to the lender with numbers that make sense and a plan to resume regular payments or have the loan refinance later by another bank your proposal has a good chance for success.

   83 Billion Dollars in Commercial Loans are in default now with more than one trillion coming due through 2010. If and when CMBS (commercial mortgage backed securities) come back online the rules will be different and it will take time for the market to adjust.

   The need to restructure or modify commercial loans will continue to increase putting pressure on both lenders and the government to save trillions in loans that are coming due.

   Contacting the lender or a modification specialist. When making contact with either there are several documents you should have ready.

   1. Updated PFS (personal financial statement)
   2. Updated I/E (Income and Expense Report)
   3. Updated Rent Roll
   4. Current Mortgage Statement
   5. Commercial Loan Modification is possible and can be done so that the lender and property owner benefit but must be approached as a business solution not a favor. If you come to the lender with numbers that make sense and a plan to resume regular payments or have the loan refinance later by another bank your proposal has a good chance for success.