COMMERCIAL LOAN MODIFICATIONS FOR GAS STATIONS
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Obtaining a commercial loan modification for a gas station property varies in complexity based on the type of gas station property that is the subject of the loan mod. Gas stations can vary from a basic filling station to a large scale station with a convenience mart, car wash, restaurant and many other amenities.
When considering whether to modify a commercial loan on a gas station property, a lender will take into account each separate component of the station in determining the potential for future cash flow. This potential will likely be the single most important factor in whether loan modification negotiations will lead to a successful outcome. Lenders will take a wide ranging look at the performance of the gas station from the inception of the loan through its current state. A determination will then have to be made as to whether the station has long term viability or whether the lender should cut its losses and foreclose now.
A properly presented and negotiated loan modification may be the option for you in order to protect your equity and sustain the operation of your gas station long enough for an economic recovery to occur. When the alternative may be losing your property, your equity and your business, a restructuring of your loan could be the answer that you need.
At Hanasab & Zolekhian, LLP, we have experience representing gas station owners in loan modifications and we use this experience to create a proposal that effectively addresses the concerns of your lender. The importance of addressing your lender’s concerns cannot be overstated. The difference between a successful commercial loan mod and a foreclosure may involve nothing more than the substance of your proposal. At the end of the day, you and your lender made an agreement and if this agreement is to be amended, your lender must feel as if their concerns are being addressed. Having represented lenders in the past, our lawyers ensure that this happens.
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