If you are the owner or an executive of a business that is struggling to keep up with its mortgage debt, you know the serious concern this puts on you. Many things may play a role in the temporary loss of business income that can contribute to the inability to make these payments. Before assuming that you are about to lose your facility, it is important for you to learn about your options to get things back on track.
Forbearances and other modifications
Banks typically do not like foreclosures any more than do mortgage holders. Depending on your history and circumstances, your lender may well be willing to negotiate a special repayment plan or option for you. The Houston Chronicle explains that a forbearance is one such type of modification that some lenders may allow. With a forbearance, you are given the ability to avoid regular payments or make only partial payments for a certain period of time. During this time, you would make payments on any past due amount so that you are current on the mortgage by the end of the forbearance.
Some loan modification plans allow you to attach any past due amount to the end of the loan term. This allows you to focus on making your normal payment only without having to attempt to make normal and past due payments at the same time.
If you would like to learn more about how to protect your business against the loss of essential office, manufacturing or other space in the face of serious financial challenges, please feel free to visit the business debt options page of our Michigan business law website.