Obtaining a loan modification on a commercial property may seem like an exercise in frustration, with the lender’s actions having no rhyme or reason, but there is a method to their madness, One key to deciphering lenders’ thought processes when it comes to loan modifications is understanding that the type of holder or servicer for the loan plays a significant role in whether or not you’ll get it, Gordon Gerson, managing principal of Gerson Law Firm APC, tells GlobeSt.com.
“Only by understanding the motives and needs of the holder of debt may a borrower on a commercial loan in default or eminent default properly posture an offer for a loan modification,” Gerson tells GlobeSt.com.
As GlobeSt.com recently reported, Gerson’s firm represented lenders in a succession of loan closings and loan-asset recoveries during May, closing more than $120 million of commercial and multifamily loans for credit unions as well as for Fannie Mae and Freddie Mac. Lenders were engaged in loan closings in Alabama, California, Colorado and Ohio, and a major loan assumption in Indiana was also handled by Gerson’s finance team.
Gerson explains that there are generally four classes or holders of loans secured by commercial real estate: banks and credit unions, life insurance companies, servicers of CMBS loans and purchasers of distressed debt portfolios. Each of these classes considers and/or acts on a request for a loan modification in a different manner.
Read more...GlobeSt.com - Loan Servicers Determine Success In Modifications - Daily News Article