Is your commercial property suffering, perhaps from a loss of tenants and income, more concessions or rent reductions? Is the impending threat of missing debt payments looming? Or are you already on the path to foreclosure, with unsuccessful negotiations for a loan modification? It may not be too late. Commercial Affiliates specializes in commercial loan modifications and debt restructuring.
You are one of many affected by the current economic and real estate slump. Realpoint LLC says in its delinquency report that unpaid balances of overdue commercial loans in February 2010 reached $48 billion. An often-cited projection from the Congressional Oversight Committee is that $1.4 trillion in commercial real estate loans will need refinancing between 2010 and 2014. Constrained credit markets are adding stress, and many are requesting a commercial loan modification.
You may have a CMBS (commercial mortgage-backed securities) loan. These loans were dominant in the lending world over the last ten years. Unfortunately, these loans are rather complicated, which creates difficulties in gaining loan modifications. CMBS loans were pooled with many other loans into a trust or REMIC (real estate mortgage investment conduit), sliced up and sold to bondholders. REMIC covenants and requirements guide how any loan modification can be handled – and in general, the rules include that no significant loan change can be made. Servicers or Special Servicers are in control of the CMBS commercial loan modification requests.
The Special Servicers interests are not aligned with yours; rather, they are a fiduciary to the bondholders and must follow the covenants. However, the Internal Revenue Service, FDIC (Federal Deposit Insurance Corp.) and the Treasury Department issued rulings to help ease the restrictions holding the Servicers from acting. Revenue Procedure 2009-45 now allows Servicers to make changes not previously contemplated by the REMIC. TD 9463 from the Treasury Department expands the list of exceptions that will not be considered “significant modifications” of mortgages.
The FDIC adopted guidance on prudent commercial real estate loan workouts in October 2009. Many Servicers are unaware of this. The FDIC supports prudent workouts, stressing that performing loans made to credit-worthy borrowers will not be subject to adverse classification solely because the underlying collateral value has declined. This helps open the door for commercial loan modifications.
However, while these rulings help, it doesn’t mean that a commercial loan modification is easy. Servicers often don’t understand the commercial real estate markets, real estate fundamentals and they are often overwhelmed with many requests and problems. Many are inexperienced.
Commercial Affiliates knows what is needed to get the attention of the Servicer. Like the FDIC, we believe that prudent workouts can benefit both borrower and the lender. Our experts specialize in commercial loan modifications and debt restructuring. We have an FDIC-approved contractor who can deal with the banks on your behalf. He knows and understands the policies and concepts, and can make headway where others may not.
THE CPAR ADVANTAGE IN YOUR COMMERCIAL LOAN MODIFICATION
Our Commercial Property Analytics Report (CPAR) is a powerful benefit for your loan modification request. It is the only platform in the industry that successfully facilitates value conversations in loan negotiations. The CPAR uses fair and realistic data for asset valuation models and is an important component in a loan negotiation. The analytics model clearly demonstrates the true cost of a foreclosure and the potential bank losses if pursuing a foreclosure.
Commercial loan modifications are becoming more common, due to the compressed and constrained lending markets. Lenders are slowly more willing to agree to a modification. However, it is not an easy negotiation or process. Compelling data and experience is needed to succeed.
SUCCESS IN COMMERCIAL LOAN MODIFICATIONS
Commercial Affiliates is a team of experienced commercial loan modification experts. Our members have successfully restructured over $10 billion in distressed real estate debt on all property types. We have extensive experience in loan workouts, in acquisition and disposition of properties, and in the analysis of a broad range of property types across the U.S. A strategy will be presented for your loan modification, and we will bridge the gap between you and the lender efficiently.
Your commercial loan modification could include reduction in the interest rate, reduction in the loan amount, immediate interest-only payment schedule, extension of the loan term, an extension of the maturity date, forbearance and deferment of payments, or other details. Our experienced team can negotiate the best commercial loan modification for you.
TAKE ACTION TODAY
Are you in need of a commercial loan modification?
Are you in threat of foreclosure?
Contact us today to discuss your property.
We will send you over $500 in our latest research for free. This information gives you exclusive insight into how you can obtain a commercial loan modification.
Contact us today!
E-mail us at info@commercialaffiliate.com
or
Telephone Miles McCabe at 1-503-731-6000