Does the Federal Government Offer Assistance for Commercial Loan Modification?
When President Obama instituted the Making Home Affordable Program to help the massive number of homeowners facing foreclosure, many held high hopes. Unfortunately, the program has failed to save as many homes as originally expected. On the other hand, there are several families who have been able to stay in their homes because of the Making Home Affordable Program, leaving many to wonder if a version of Making Home Affordable exists for commercial borrowers.
While there is no commercial equivalent to the Making Home Affordable Program, the government does offer several funding programs for small businesses and certain qualifying organizations, like educational institutions and non-profits. The only problem with these programs is that they are not usually meant to pull businesses from the brink of foreclosure, rather they are intended to offer start up funds and financial assistance throughout the year. Government programs are always being created though, so interested business owners should monitor the website www.Grants.gov for information on federal funding opportunities aimed directly at struggling businesses.
For the business owner in need of a commercial loan modification with little to no time to waste waiting on a government program to be created, direct negotiation with the lender may be the only way to go. By negotiating directly with the lender the business owner will have the opportunity to offer their lender financial evidence and an explanation to justify the modification. Once a negotiation has started, the business owner will also be able to provide counter offers if those made by the lender will not provide enough assistance.
In the long run, commercial loan modification is almost always more profitable for the lender than foreclosure, so most will be willing to negotiate. Unfortunately, many borrowers have express frustration with their lenders over the lack of customer service and assistance they receive in these matters. Borrowers have been hung up on, given the run around, and basically not helped at all by their lenders, leading many to wonder if their lenders are serious about offering assistance.
The fact that many lenders fail or refuse to offer the assistance that they should is a cruel fact of the lending industry. Some lenders are just better to deal with than others. For the borrower who wants to ensure their claim for assistance gets the amount of attention that it deserves, an experienced attorney can offer a lot of help. Attorneys are better at cutting through red tape than the average borrower who may have little to no knowledge of lending laws or practices. This fact will allow struggling business owners to do the job that they do best, which is run their business.
For the business owner, a loan modification offers more than just a chance to lower monthly payments. It is a chance to recover from debt and get their business back on track. For the business owner who has personal assets tied up in their business, a successful loan modification is often the only way to save personal property from being liquidated to settle debts.Post Tags: Commercial Loan Modification, Commercial Loan Modification Assistance, Loan Modification, Loan Modification Assistance