Commercial loan modification experts, also referred to as commercial loan modification consultants, are generally non-attorney individuals who claim that they can offer assistance in getting commercial loans modified. While many of these experts or consultants are legitimate, many have been found to be scammers, and should therefore be approached with caution.
A business owner facing foreclosure is often in a very desperate state of mind, willing to pay for services that sound like they will be able to keep the business owner out of foreclosure. The business owner, however, must be just as cautious as the homeowner facing foreclosure. Caution is necessary in order to avoid being scammed out of hundreds, if not thousands of dollars.
Commercial loan modification experts may scam their clients by requesting upfront fees, or any other form of payment, for little to no work done. Some will claim that they negotiated with the lender on behalf of the borrower when in reality no such negotiation ever took place. Others will simply accept the first offer made by the lender and will make no real effort to actually negotiate.
Hiring an expert that turns out to be nothing more than a simple con-artist can be dangerous for the business owner, in more ways than one. For starters, the expert will burn through valuable money in exchange for no work accomplished, money that could have just as easily been better spent elsewhere. The worst case scenario to hiring a scam artist is, of course, the eventual fall of the business into foreclosure, leaving the once proud owner with nothing to their name.
While it is understandable why anybody would want a quick and easy way out of their financial trouble, no such quick fix exists. A commercial loan modification is a lengthy legal process that requires knowledge of lending industry laws, procedures, and regulations. What many individuals, business owners and homeowners alike, tend to forget is that the possibility for a loan modification negotiation to turn into a litigation scenario in front of a judge is always present.
Non-attorney commercial loan modification experts cannot represent the borrower in court. If an attorney is assigned by a modification expert, the attorney in that case will have very little background information on the business owner, their exact financial situation, and their past efforts to save their business. These “hand me down” attorneys are also working on more than one case for the modification expert, meaning the client will rarely get the full attention they require to win in court.
It is always better to enter a commercial loan modification scenario with an experienced attorney, one who has been trained in matters of foreclosure and business law and one who can handle a case from beginning to end. This way, the borrower will be able to build a working relationship with their attorney and will be able to receive answers to questions and guidance specific to their case. Also, should things not work out for the borrower in court their attorney will be able to assist them in pursuing other options, such as bankruptcy, a short sale, a deed in lieu of foreclosure, etc. If the same person handles the case from the beginning they will be able to pursue alternative options almost immediately, instead of requiring the borrower to find another person who can offer them assistance and having them explain their situation from the beginning.