FREQUENTLY ASKED QUESTIONS
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What is a commercial loan modification?
How long does the commercial loan modification process take?
Is a commercial loan modification an option for my loan?
What is a commercial loan modification?
A commercial loan modification (or loan restructuring) is a change in the terms of your commercial real estate loan negotiated by our attorneys and your lender. In a successful modification, your loan may be restructured in a number of ways. The most common possibilities are a change in your loan payments to a short term interest only structure, a reduction in your interest rate, an extension of your maturity date or a reduction in your principal amount. In some instances, our attorneys may also be able to negotiate a purchase of your note at a discounted amount.
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How long does the commercial loan modification process take?
There are many factors that determine how long a commercial loan modification process may take. Each real estate loan is highly unique and because of this, each loan mod moves forward on its own timeline. In addition to the unique nature of each loan, the responsiveness of each lender is a major factor in determining the timeline. Some lenders are more open to restructuring their commercial loans which would yield a much more efficient process, whereas other lenders are tough negotiators and warrant a lengthier process. Generally, however, a commercial loan modification takes between one and four months.
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Is a commercial loan modification an option for my loan?
The attorneys at Hanasab & Zolekhian, LLP, will do a free complete analysis of your loan in order to determine whether a commercial loan modification is an option for you. Although we cannot guaranty results because each lender has its own complex and unique underwriting standards, our law firm will only take your loan if we determine that there is a high likelihood of success.
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