Are Banks Really Doing Commercial Mortgages
They will just ask for more and more information and stonewall your request until you get frustrated and go away.
In good times most bankers like to see you beg, but in bad times they will string you out because they want to hang on to your deposit as long as possible.
Meanwhile, the great and loyal borrower is being hung out to dry, particularly if he/she has a bank loan with a balloon due in 2010 or 2011.
Sage Advice:
If you have a Balloon loan coming due in 2010, start working on getting refinanced with us right now! Having a Plan B can prevent you being in default when your "friendly" bank/lender drops you like a hot potato as they rebuild reserves to cover their bad residential construction loans.
Know Your Loan Documents:
If you have Bank reporting requirements as part of your loan documents, make sure your are up to date meeting every single requirement.
Do not give your lender an excuse to "Call" their note and leave you high and dry with no where to go with a major blemish on your record.
If you have a balloon payment coming up, check your original loan documents for any prepayment penalties, or interest guarantee provisions that may still be hanging over your head.
I recently had a client come to me to refinance out of a balloon 6 months early to find he still had an interest guarantee and prepayment provisions that would cost him $30,000 in penalties after 9 years and 6 months into his loan!
What a shock! Neither his attorney, closing agent nor the lender disclosed these provisions to him in understandable language at the time of the original closing.
Be smart and revisit you loan documents so you have no surprises when you plan to successfully refinance your loan.
If everything else fails:
If you run out of options where your lender will not renew your Balloon loan and you can't qualify for a refinance with any other lender, then consider our "Commercial Loan Modification" service. There is no cost for us to assess whether we can get your loan modified and if we can, we may be able to save your bacon.
You can find a Commercial Loan Modification Pre Qualification Form for download under "Forms" at the top of this page.
Read more about our "Commercial Loan Modification" in our "Balloons & Bank Calls" section.
As always, please contact me with any questions, concerns or just to talk.
Arthur
860-946-6637
