Phoenix, Arizona Loan Modification & Foreclosure Attorney

Scottsdale Commercial Loan Workouts/Modifications

Law Office Of

Joseph A. Velez

480.710.5079

Real Estate & Business Law Attorney

Are you facing financial difficulty making it hard to pay your monthly mortgage?

Due to a variety of factors, Arizona commercial property values have steadily declined over the past few years resulting in many near defaults.  To compound the poor economic situation, many commercial real estate owners are facing financial hardship from reduced income, loss of tenant(s), and/or loss of business, making it difficult to make their current monthly loan payments. Rather than assume the debt and property back, commercial lenders are becoming more and more willing to renegotiate the terms of the loan.  An Arizona commercial loan modification may be used to negotiate a reduction of any outstanding balance, lower the interest rate and/or extend the length of the loan to reduce monthly payments. 

There are specific factors that determine if you are eligible for a commercial loan modification. The type of property, percentage of positive or negative equity, income, and type of hardship are all considered.  Every borrower’s situation, and every tenant’s situation is different- so is every lender’s and landlord’s.  There is not a “one-size-fits-all” approach to loan or lease renegotiation or modification.  It is best to speak with an experienced Arizona commercial real estate attorney to determine the best course of action for your commercial property. It is important to understand the information that can affect you and your financial success including: tax considerations, landlord/tenant laws, credit implications, financial protection tactics, as well as a variety of other legal matters that may apply.

At the Law Office of Joseph A. Velez  we have extensive experience representing Arizona borrowers in loan modification negotiations.  When you come in for a pre-qualification meeting, we will go over your financial situation and explain your options.  Keeping your best interest in mind, we will negotiate with your lender to get the most favorable terms for your commercial loan workout.  If you are struggling to keep up with your monthly mortgage payments, a commercial loan workout can allow you to keep your property with more manageable payment terms.  Please call the Law Office of Joseph A. Velez to schedule a consultation.

What is a commercial mortgage loan modification?

A commercial loan modification involves permanently changing the terms of the original note on a commercial property (i.e.. restaurant, mixed-use, apartment or office building).  Investors of commercial loans are often easier to identify and communicate with making successful negotiations more possible.

Why would the banks want to renegotiate?   

Banks want to minimize their amount of loss.  Many lenders would rather change the terms of the loan to a payment plan that is affordable than take the property (and debt) through foreclosure.  A loan modification allows lenders to keep the loan on their books at full value rather than being forced to mark it down according to current market values.

Do I qualify for a commercial loan modification?

There are many factors that determine whether a lender will modify a loan.  Equity, income, payment history, debt ratio, along with many other factors are all considered.  Banks want to see that a business is still earning income in order to consider a loan modification.  An experienced commercial loss-mitigation attorney can guide you in taking the best approach when portraying the qualifications for a commercial loan workout. 

Can I do it myself?

A borrower may communicate with the lender on their behalf; however, a professional negotiator can significantly increase the likelihood that a commercial loan modification solution will be reached with the best possible deal available.  The banks do not typically offer the best deal in the first stages of negotiation.  It may take multiple attempts to negotiate the deal down.  Having a loan modification attorney on your side will offer confident negotiation tactics resulting in a more affordable solution.

Commercial Loan Workout FAQS

The Law Office of Joseph Velez

Commercial Real Estate & Business Law Attorney

Scottsdale Financial Center

7272 E. Indian School Rd., Suite 111

Scottsdale, Arizona 85251

480.710.5079

Our law office represents clients throughout the Phoenix, Arizona area including the cities of Scottsdale, Maricopa, Mesa, Surprise, Paradise Valley, Avondale, Gilbert, Chandler, Glendale, Florence, New River, Fountain Hills, Peoria, Surprise, Queen Creek, Tempe, Sun City, Apache Junction, and Casa Grande. We serve the counties of Maricopa, Yavapai, Gila, Pinal, La Paz, Yuma, and Pima County.

DISCLAIMER: This site and any information contained herein are intended for informational purposes only and should not be construed as legal advice. Seek competent legal counsel for advice on any legal matter.

One hour initial office consultation fee is $295 for the matters discussed above.