However, the concepts are still the same. If you don’t make enough money now, at what level will you be able to afford payments in the future?

It’s just that the number crunching is more complex.

One thing that figures prominently into the commercial modification process is a business plan. Your mortgagor is going to want details of how the restructuring is going to prove worthy in the long run.

Just as is the case with an individual, you will have to show the property making enough profit to justify the modification.

The bank will ask for details and will want to see hard evidence that (1) your current situation dictates a change and (2) your future situation makes financial sense for both parties.

Documentation Needed

Again, many commercial documents are similar to those requested in the residential process.

Items such as a hardship letter, authorization forms, and bank and mortgage statements will all be requested.

In breaking down expenses and income, you’ll need to provide rent rolls, operational income, an operating expense statement and short term budget. Business tax returns will also be necessary.

Also, as mentioned above, an updated business plan will be necessary.

A professional firm can represent you and present everything as one, clean package to the lender.

The Waiting Game

With a detailed presentation given to the lender, aggressive negotiations are necessary to keep the lender involved and let them know you mean business.

However, it takes patience. Depending on the lender, it could take months to reach an agreement on a restructured deal.You’ll want to prepare yourself mentally for a drawn out process.

Again, you many want to consider professional help to ensure someone is always on top of your file and keeping the negotiations going strong.

Questions to Think About If Doing a Loan Mod on Your Own

• Are you prepared for the long, drawn-out process? Lenders take upwards of 4 months in many cases and sometimes longer to come to a decision. This is going to require a lot of your valuable time.
• Are you properly representing your financial situation? I’ve personally seen people try this on their own and get turned down because they didn’t do their financials correctly. If you don’t know what the lender is looking for, it is very easy to get rejected on account of a poorly constructed financial worksheet.
• What happens if the lender says no? You might get to the end of the process, put together a good case for yourself and still get turned down. What do you do? No isn’t the final answer and you have to pursue a result to the dying end.
• Do you know how to explain your hardship? Like your financial worksheet, a poorly constructed hardship is a major reason people get declined. You have to craft a convincing letter that is true to your situation and describes why you are struggling to pay your mortgage.
• Can you get around the collections department and others at the lender that don’t have your best interests in mind? A lot of the time, people call up thinking they are getting loan modification help and end up with a collections agent whose primary goal is to get you to pay everything you owe right now. It can be very frustrating. Third party companies have all the inside contacts at your lender and can get right to your loan modification case.
• Are you prepared for a disorganized lender? The submission process itself can be a nightmare if you don’t stay on top of it. It can take a long time for a lender to even assign it to someone and it’s very easy for you to get lost in the shuffle.

If you find the process too difficult and have questions, you can apply on our website.

• Improperly documenting financial situation. You need to consider every potential expense and be up front and honest about your debts and liabilities.
• Trying to do it yourself. This one is easy to avoid. Unless you are clearly comfortable with the process, you’d be wise to pick up the phone and call a loss mitigation specialist.
• Not knowing what to do if the modification fails.There are other programs that offer better alternatives to foreclosure. If loan modification fails, we’ll know what to do next.
• Submitting an incomplete package. Our process ensures you will not miss a step and make critical mistakes.
• Poorly crafted hardship letter. Your hardship letter is an opportunity to explain to the lender why you are experiencing difficulties and can go a long way toward convincing a lender that you are a good candidate for modification.
• Talking to the wrong department. If you call your lender, there’s a good chance you’ll have a hard time connecting with the right department. Often, lenders route delinquent accounts to collections who are only interested in getting your full amount due. These are not the people to talk to and will only frustrate you into thinking you are out of options.