Q: What is the Difference Between a Loan Modification and a Note Workout?

A: The main difference between the loan modification and the note workout has to do with the lender.  With the loan modification the lender tends to remain the same and the terms of the loan are modified.  However, with a discounted note workout, the original lender sells the note to a new lender and it is the new lender who modifies the terms of the loan.

Q: What is involved in a Commercial Loan Modification?

A: In a commercial loan modification, the original mortgage terms of the commercial property are modified, often permanently.  Most lenders are willing to renegotiate and modify a mortgage loan in the interest of avoiding financial loss or foreclosure.  There are many solutions that can be considered for a modification including reducing the interest rate, allowing interest-only payments for a period of time, extending the loan term, deferring past due balances and occasionally lowering the loan balance.

Q: Do I qualify for a Loan Modification?

A: There is no simple answer for this question.  Our team of negotiators will review the information for each and every case that is submitted to us.  Only after a thorough review of the information can they begin to determine if your commercial loan qualifies for a modification.  Should the negotiators find that you have a strong case for loan modification, you will receive full support from them.  They will negotiate directly with your lender and work tirelessly toward helping you get a modification that will allow you to keep your property and improve your financial picture.

Q: Can I negotiate my own loan modification?

A: Yes, you can try to negotiate your own loan mod.  The bigger question is “should you”?  Any loan modification is a very involved process, and this is especially true for commercial mortgages.  There is a steep learning curve that involves knowing what information is most important to the lender, who to talk to, how to present your modification request, which documents to include and so on.  Our negotiators have a huge amount of knowledge AND experience in obtaining commercial loan modifications.  They know who to talk to and how to get results.

Q: How long does it take to get funding from you?

A: That depends on the type of loan.  Once we review your initial information, we can generally give a conditional ‘yes’ or ‘no’ answer within 3 business days.  With so many dramatic changes to the the commercial finance situation right now, we are seeing a tremendous increase in the volume of note workout and loan modification requests.  As the number of these requests increases it can push our response time back a bit, but we always try to respond as quickly as possible.  Programs such as the medical practice financing can see a loan closing in 4-7 days, while the more involved programs such as the commercial loan modifications can take a few weeks to a few months (in difficult cases) to close.