Commercial loan modification processTo
simplify the commercial loan modification process, we've compiled a
list of items you'll need to the lender or broker who is assiting you
Depending upon your circumstances, you may need to bring additional documents.
* Current rent roll
* Historical Rent Roll (2yrs if you have it)
* Current Income and Expense Report
* Current Mortgage Statement
* Updated PFS (Personal Financial Statement)
* Tenant profiles describing the larger tenants
Commercial Loan Modification is based on the property type, current cash flow, vacancy rate and borrower strength. For example if you have an apartment building that was 98% occupied in 2007 and 2008 but now is at 89% the modification would be targeted to work within the adjusted NOI (net operating income).
If you had an Office or Retail building those factors plus the strength of the tenants and their leases would be considered. If you had a known tenant (credit tenant) and a few more units to spread the risk with the credit tenant having a longer term lease the Commercial Loan Modification would be easier to negotiate.