Over a million property owners in the United States face foreclosure every year. Rising inflation can cause financial hardship for businesses, so it’s no surprise that commercial bankruptcies soared by 26% during the pandemic.
However, you can secure your commercial property and repossess it if you deal with it the right way. This blog will guide you in dealing with the threat of foreclosure.
Know Your Rights
Knowing your corporate rights is the most crucial aspect of every commercial transaction. Business property owners are subject to various commercial lending laws.
Determine first whether your property is even eligible for foreclosure. Consult a reputable private money lender to learn more about your business loan privileges.
Attempt to Stop It
You can request special forbearance, a repayment plan, or a loan modification to avoid foreclosure with commercial hard money lenders. They can modify plans as much as possible to help you repay the amount.
The success of any of these unusual exceptions is contingent on your ability to persuade your lender. You should be able to show that you defaulted on the loan owing to a temporary problem and that you will soon be able to get back on your feet financially.
Consider Your Options
You can still dispute the foreclosure in court if you can’t halt it. You can also consider filing for bankruptcy, selling the business property in a pre-foreclosure sale, or filing a lawsuit to stop the foreclosure.
Exploring your choices with the support of a business hard money lender or lawyer can be more successful. Other less desirable options, such as a deed-in-lieu-of-foreclosure and a commercial short sale, are also worth considering.
Get Workout Loans from Commercial Private Equity
Workout Loans might help you restructure your debt payments. We recommend working with a seasoned private asset-based lender who can assess your financial condition and offer you a realistic workout loan alternative.
A workout loan at Commercial Private Equity will allow you to begin repaying your debt under new terms customized to your financial situation. For the past seventy-five years, we’ve been assisting businesses in financial distress. Clients can use our asset-based workout loans to modify their debt payments.
We offer a variety of hard money loans, including bridge, construction, commercial hard money, raw land, and workout loans. Our professional underwriting staff can pre-approve your loan in as little as 24 hours.
Contact us today to avoid foreclosure and better manage your finances.