subject: Loan Modification Process [print this page] A loan becomes expensive when the payments of the loan are not made on time. For instance, a hotel owner who has borrowed money to build or manage his hotel might consider a hotel loan modification, to help lower his monthly payments when business is down. Hotel loan modifications are the same as commercial loan modifications of all types.
The basic aim of a commercial loan modification is to better manage such loans at a cheaper and more affordable rate. Loan modifications have to be done in the proper manner, in order to get the lender to agree to a modification of the loan. More often than not, the advice of a financial expert or legal practitioner is needed for a loan modification plan to go through in a timely manner without any hitches.
When a business owners first finds their business is waning, they should contact a loan modification expert to start a loan modification. If they already stopped making payments, this necessitates an immediate loan modification.
The terms of a loan agreement have to be brought to the fore and key areas need to be redrafted as deemed acceptable to both the borrower and the lender. In almost all loan modification cases, it is the borrower that seeks modifications of the original loan, in order to make his/her debt repayment hitch-free and cheaper in the short term.
Thus, the lender's consent is necessary for a loan modification agreement to be effected. With a professional loan modification team, the lender is more apt to see a loan modification as a way to recoup his money in a conflict-free way.
Loan Modification Process
By: Dee Vanover
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