Many of the same financial problems facing homeowners in America are also facing private business operators. With the economy still in a slump, many business owners have to deal with the thought of facing foreclosure. While the financial trouble and possible solutions for avoiding foreclosure are similar for businesses and homeowners, the stress involved for the business owner will often be doubled than for the average homeowner. Business owners are often placed under more stress than homeowners because many businesses tie their personal assets to their professional ones, as would be the case if a business owner took out a second mortgage on his or her home in order to raise the capital needed to launch a new business. When a business faces foreclosure, the personal life and assets of the business owner are also put at risk. Not only could the business owner stand to lose their property, they could also lose the way of life they have grown accustomed to after years of being their own boss.
This is, of course, only a general illustration of a worst case scenario, but still very possible if certain circumstances exist.
A business owner facing foreclosure should waste no time getting professional commercial loan modification assistance. The procedure for negotiating a loan modification for commercial property is similar to the procedure for negotiating a loan modification for residential property. The business owner will have to submit personal financial information and a hardship letter along with any other application papers the lender wants.
When shopping for a commercial loan modification assistance service, the business owner in distress would be wise to hire a traditional law firm specializing in matters of foreclosure. This will allow all services that the business owner needs to be provided by the same firm, rather than having to hire one firm to conduct a mortgage contract audit, another firm to conduct the negotiations, and yet another firm to represent the business owner in court should the lender refuse to negotiate or reach a fair agreement.
Hiring an attorney who can handle all aspects of foreclosure avoidance for the business owner will also allow the business owner to work on running their business, since every minute that the business owners spends not making a profit is another minute closer to foreclosure. Many business owners don’t like the idea of a foreclosure, but they like the idea of not being able to run their business even less.
Most business owners are not experts in real estate or mortgage law, which is why it is often better to hire an experienced attorney rather than trying to run the business, negotiate with lenders, and fight foreclosure in court (if it gets that far).
With all of that in mind, the business owner should begin seeking commercial loan modification assistance from an experienced attorney as soon as foreclosure becomes a concern. It makes no difference whether or not the loan is in default, if the business owner can take steps to modify their commercial loan prior to it falling in default, they will find themselves in a much better financial position down the road.