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Commercial loan Modification Is The Only Logical Solution for Borrowers with Maturing, Distressed, Foreclosure or Receivership issues going on. If a borrower has a property that was securitized as a CMBS (commercial mortgage backed security) loan they are in a very different position today from where they were a year ago as relates to the ability to modify the terms of the loan with their servicer. Since last September (2009) three key moves were made by the government in an attempt to persuade investors in CMBS pools to be willing to modify existing commercial loans.

The IRS via Proc 2009-45 removed the tax liability for those investors who modify the loan on commercial real estate, thereby eliminating the cost factor from the commercial modification decision process. In addition the REMICS rules were changed to include language to cover loans not just "In Default" or where default was "Immanent" but also to include loans where default is "Foreseeable". This means cmbs loans maturing within a 12 month window with high ltv and lower cash flow due to the economy are eligible for modification and can be re-worked by special sevicers upon request.

The second piece was the FDIC release of a policy statement on modification of commercial loans issued in October of 2009. This 33 page document lays out the governments view of how, under what circumstances and by what terms banks should consider modification of CRE loans

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Lastly the treasury extended the TALF program to keep the possibility of new CMBS originations out there while the market recovers and adapts to new regulations.

Taken together these actions created an environment where lenders are more than open to re-working existing CRE loans. For borrowers it is a life saver as they may be able to save their property from default. For Modification Servicers it is the perfect market to enter in these tough times as there is little competition and over 2 trillion dollars in loans coming due over the next couple of years. Let CommercialLeads.net help you get started in this lucritive market with our one of a kind Commercial Modification turn-key solution.