What to Expect from Commercial Mortgage Litigation Fees
Commercial mortgage litigation fees can add up for a borrower, but in most cases, the fees will be minimal in comparison to what can be lost from a ruling in favor of the lender. When a case goes to litigation, it generally is because the two parties involved have been unable to reach an agreement to a dispute and now require intervention from the courts. When this happens, borrowers have one of two options: hire an attorney or represent themselves. Contrary to popular belief, it is the latter, not the former, that can turn out to be more expensive.
When a person acts as their own lawyer against their lender, they are putting themselves in a situation where the odds are stacked against them even before the trial begins. Lenders don’t tend to hire attorneys with no experience or horrible track records, at least not for the money they’re paying. Lender attorneys are generally very good at their work and have years of experience representing lenders in court. Borrowers, on the other hand, don’t usually have the legal knowledge or experience necessary to face their lender in court and win. Even borrowers who think that they have a solid argument and their case should be open and shut, the mere idea of having to face a judge, rival attorneys, and an audience in open court is enough to make any lay-person nervous enough to forget important aspects of their argument when the time comes to perform.
When the odds are stacked against the borrower, the borrower is more likely to lose the trial. In the case of commercial mortgage litigation, the loss of a trial typically ushers in the loss of a property. Even though the borrower may save some money by not hiring an attorney, the loss of the property the borrower was fighting for in the first place will be more costly in the long run. Also, if the property is foreclosed on, the borrower will have to attempt to rebuild their credit score after the mark of “foreclosure” is reported to the credit bureaus.
Commercial mortgage litigation fees that a property owner can expect to pay if they are serious about saving their property include fees related to the preparation and filing of documents and the collection of evidence to support the borrower’s claims. The borrower will also have to pay their attorney for their efforts in and out of the court room.
Commercial property owners are business minded people who are used to the idea of making deals, negotiating terms, and trying their hardest to get what they want. This kind of dedication to business should not be abandoned in the face of foreclosure;especially not if the property owner has any desire to continue with their business in the future. Commercial mortgage litigation should be seen as just another business deal that will help their business succeed. If the business owner wants the best opportunity for success, then he or she should leave the details of the deal to the legal professionals. This tactic will also allow the business owner to focus on the day to day operations of their business so that their business doesn’t suffer while they try to save it. If the owner is able to avoid foreclosure but loses profits, they will have to fight the uphill battle of maintaining a profit while attempting to recover from the loss of profits.Post Tags: