There has been a large uptick in the number of commercial foreclosures that are in default. Many office buildings, residential buildings, and shopping centers are at risk of being sold at a public foreclosure auction. Many commercial mortgages are designed to bury the borrower with default interest, costs, special servicing fees, legal fees, and cost as soon as payment has been missed.
Commercial mortgage holders are often sitting back and waiting for default so they can go full steam ahead and take the property. It’s the “loan to own” strategy that many commercial mortgage holders employ. The mortgages are designed to grossly inflate costs and the reinstatement amount making it next to impossible to get caught up. Further, most of these mortgages do not have a reinstatement provision, meaning that once the loan is in default, there is no contractual option other than to pay off the loan in full, including all of the overly inflated default interest and other costs and fees.
Then there is the issue of personal guarantees. If you signed a personal guarantee for a commercial mortgage, you are on the hook for the total amount due. This can be a precarious position for someone with assets. If the bank is successful in obtaining a judgment against you, they will try to collect from you and your personal assets will be at risk.
How Loan Lawyers Law Firm Can Help
If you find yourself behind on payments on a commercial foreclosure for a commercial building, residential building, or shopping center, do not go at it alone, you need to hire an aggressive law firm with a proven track record of fighting foreclosures in court. The lender is most certainly working on squeezing every last penny they can to inflate the loan balance so that you lose the property and they pick it up at auction, not to mention the issue of personal liability for any guarantors.
At Loan Lawyers, we can aggressively represent your interests and have the experience and reputation to effectively fight for your rights. We will do everything in our power to keep the bank from taking your commercial property. Call us now to speak with one of the partners from the firm about your commercial foreclosure case.
The consultation is free and the information you receive will be priceless. Do not let the bank walk all over you, the sooner you hire the right law firm, the better your chances of saving the property will be. Call us 1-888-FIGHT-13 to schedule your free consultation with a firm partner.