Church Loan Modifications Foreclosure Article
Church loan modifications may be the only way to stem the tide of church loan defaults and foreclosures. In a recent article in Time Magazine, Michael Weisskopf wrote of "losses of at least $200 billion on commercial real estate loans overall". With commercial property foreclosures at their highest levels ever and many owners are turning to loan modifications to help them keep their properties. Sadly, many churches and 501c-3's are defaulting and their doors are being shut forever. Is anyone providing church loan modifications? With so many people out of work and struggling, families often times can't afford ...
CHURCH LOAN MODIFICATION
A church loan modification is simply an agreement between your church, ministry or 501c-3 and your lender to permanently change the terms of your current loan. You might be behind in your payments or anticipate serious trouble in the very near future. We are here to serve you and negotiate those terms for you. You focus on what you have been called to do without financial distractions. The terms negotiated can help you:
- Avoid a Pending Foreclosure and Bring Your Loan Current
- Reduce Your Interest Rate and Possibly Reduce Your Principal
- Extend the Term of the Loan and Create Positive Cash Flow
- Forbearance Agreements and Short Sale Authorizations
- Reducing/Eliminating Penalties and Fees
- Negotiating Deeds-in-Lieu of Foreclosure
- Removals of Prepayment Penalties or Lock Outs
Church Loan Modifications
We understand church and non-profit lending because that is what we have done for the last 7 years. Our experience and non-adversarial approach is influencing many commercial banks to understand the benefit of renegotiating the terms of their loans to faith based organizations. Our belief in your mission and persistence helps us achieve positive results.
We are able to perform loan modifications on:
- Non-denominational houses of Worship
- Private Schools
- Day-Care Centers
- Other Commercial Properties
The Review Process
Church Loan Modifications, LLC is a pioneer and leader in the church and non-profit loan modification industry. First, one of our principals will personally evaluate your portfolio, financials and hardship to ensure the viability of a successful modification. Once we understand your goals and what is important to you, we will further analyze your file with our amazing team of negotiators to ensure compliance. If it is in yours and our best interest to proceed, we will consult with you to let you know what your options are. If we all agree to partner together, we will collect supporting and required documentation to prepare the file for submission to the lender. We must also conduct a thorough valuation of the property. Finally, one of our negotiators is assigned your file, and after introducing themselves, immediately commence the modification process. We provide a team of skilled and highly experienced former commercial bankers, brokers and underwriters to negotiate with the lender for a loan modification most beneficial to the client.
How to Get Started
We provide a no obligation, free consultation to anyone looking into their options. We pride ourselves on being timely in our responses. Feel free to leave us a message or send us an email. We will get back to you within 24 hours.
You can also choose to fill out the no obligation, free consultation form below. Upon submitting this form, one of our principals will promptly be in touch with you to discuss your situation and possible loan modification solution.
Commercial Loan Workouts
Your Church Loan is a Commercial Loan. The current economy has negatively impacted almost every sector of our society. Families and businesses have been fighting to make ends meet for quite some time. When the people you serve are suffering financially, your giving suffers as well. You are often times asked to do more and will always find a way to do so. Churches and helps based organizations need resources to meet the needs in their communities. Every lender has felt the impact of the countless defaults of residential mortgages. Many of these same lenders hold billions of dollars in commercial debt. A recent article in the Dallas Morning News stated, “With lenders still keeping a tight rein on real estate debt, it’s often impossible for borrowers to extend or refinance commercial property loans”.
The Exciting News
The IRS has recently issued a new rule (see link below) aimed at easing the restrictions on modifications of commercial mortgages in CMBS Loan Pools. This action allows us to begin negotiating with your loan servicer before you fall behind on your mortgage. Before this new rule there was only a small number of loans in a servicing pool could be worked-out and they must have already have been in default. Church Loan Modifications IRS PDF
According to the IRS “The current situation in the credit markets is affecting the availability of financing and refinancing for commercial real estate. In particular, borrowers under many of the commercial mortgage loans that will mature in the next few years are concerned that they will encounter great difficulty in obtaining refinancing for these loans. Because they had always anticipated using the proceeds from refinancing to satisfy the principal balance due at maturity, these borrowers are often at risk of defaulting when their loans mature. This may be true even for loans in which the underlying commercial real estate is providing more than enough cash flow to satisfy debt service before maturity.”
The Federal Financial Institutions Examination Council recognizes that prudent loan workouts are often in the best interest of both financial institutions and borrowers, particularly during difficult economic conditions.
Check out this report: Church Loan Modifications FDIC PDF