The Secret to Being Approved for a Business Loan Modification

By: Timothy McFarlin | Published: June 18th, 2010 | Category: Loan Modification

When a business owner faces the foreclosure of their business loan, a business loan modification may be just the fix to keep the doors to the business open.  A business loan modification will allow the borrower to pay a lower, often fixed, monthly payment.  An Internet search for business loan modification assistance will reveal thousands upon thousands of deals and bargains aimed at desperate business owners offering assistance.  In many cases, all the business owner needs to do to save their business is order some kit or package promising to reverse their financial trouble with a single mouse click.  Despite how good these deals may sound, the assistance they offer is minimal, and they often just repackage information the business owner could just as easily obtain for free.

The real secret to being approved for a business loan modification is hiring a professional.  Not just a consultant or an expert, but a legal professional, a local licensed attorney with verifiable experience and legitimate references.

Some business owners may think that they have the time or the resources to successfully negotiate a business loan modification on their own, but this is rarely the case.  Those that do have the time and resources to act on their own behalf often lack the legal knowledge to survive toe to toe against well paid lender negotiators and lender attorneys.

Experts and consultants, even the few who are legitimate, are very limited in the services that they can provide.  Even if they are able to negotiate a loan modification successfully, they will not usually be able to get as good of a rate as an attorney because they lack the legal knowledge necessary to compel the lender to offer the best deal possible.  Experts and consultants cannot represent the borrower in legal proceedings and can’t even act on behalf of the borrower to file the necessary documents to initiate legal proceedings.  Lenders know this and they will take advantage of the lack of legal knowledge and authority as much as they can in order to hang on to as much money as they can.

An experienced foreclosure attorney is the best way to go for business owners facing foreclosure.  Attorneys are held to very high standards, both professionally and ethically, and they can assist the borrower through every step of the negotiations.  Paying for a service that provides anything less than what an attorney can offer is a potential waste of money and at this stage in the process, a loss of money is the last thing the business owner needs.

It could be argued that the real secret to being awarded a business loan modification is that there is no secret.  Everything a person needs to learn about the process is available for free, either on the web or through legal aid networks.  Most attorneys even offer free consultations to individuals with specific questions to determine whether or not they would be able to help the person modify their loan.

Despite what the Internet advertisements say, there is no substitute for hiring a legal professional to handle the modification process.  The borrower could try to find a cheap and easy quick fix to their problem, but chances are they won’t like the results.

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