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    5 Replies Latest reply on Mar 9, 2009 12:09 AM by NoBullFunding

    Behind on loan payments?  Pick up the phone!

    NoBullFunding Scout
      I keep seeing posts from business owners who are looking for loans so that they can refi existing debt that they are falling behind on. If your business is struggling and performing below your historical results, chances are that there will be no white knights who ride into town to save the day. But all is not lost...

      As someone who does this for a living, I'd like to give you a simple thing that you can do to help yourself: talk to your lender. In many cases, they have deferal programs or loss mitigation departments that will try to work with you to get through this tough period. If things are really bad and you are thinking about bankruptcy, some lenders will be willing to negotiate down interest, late fees, and even the principal balance.

      The worst thing you can do is stop making payments and begin ignoring your lender. If you become unresponsive, you essentially make the decision for the banks to pass you loan to attorneys or collection agents since they must assume you have no intent to ever pay again.

      If you feel intimidated talking to people at banks, then hire someone to do it. This is a service I offer to my clients. My fees are based on how much I save them, so it works out for everyone in the end - the lenders gets at least some money, and you get reduced payments.

      Just like a relationship with a girlfriend/boyfried, communucation is key to the success of the relationship!
        • Re: Behind on loan payments?  Pick up the phone!
          bmt2008 Adventurer
          Good advice! Talk to your lender. Given this day and age, they are more interested in helping you (which helps them ultimately get paid) then sending your acocunt to collections - which ends up costing them even more. They want to listen to you - was not always the case - but times have changed.
            • Re: Behind on loan payments?  Pick up the phone!
              NoBullFunding Scout
              Good point BMT - Times have most definately changed. With losses mounting quickly, banks are definately looking to work with their customers more than ever.
                • Re: Behind on loan payments?  Pick up the phone!
                  viciscorp Newbie
                  It is not my case. My lender for my property in Dallas is foreclosing for just only one month behind payment even I email and talked to them ahead of time. They are hard money lender and just simply COLD Blood. Property is a 17.4 acres commercial lot land frontage freeway FM-720. Appraisal value indicated 2.250M and the current loan amount is 1.0M (45% LTV). However, I have been looking for lot land lenders in the last 6 months but can not find any lenders to refinance this loan. Location is PRIME, property type is SCARY for this economy time becuase it is unimproved lot land. However, the area is still growing in term of population from the last three years. I think my lender just want to wipe me out because the equity is there.
              • Re: Behind on loan payments?  Pick up the phone!
                migpa424 Newbie
                If you were to look for someone to help you communicate with your lender about loan modification and such, how do you know who's out there that can truly help and not take your money and run. I have noticed there are a lot of this type of businesses opening up every where, offering to help you to stop foreclosure and help you deal with your bank, but the first thing they ask for is thousands of dollars to be paid up front. Then they don't do anything, sometimes they even disappear. How do you spot the real ones from the bad ones? If you a couple thousand dollars in hand you might as well give it to your bank.
                  • Re: Behind on loan payments?  Pick up the phone!
                    NoBullFunding Scout
                    Migpa - I think the best way to know is to deal with a firm that only charges if they get results for you...that's how I work. I charge a % of the money I save my customers and only charge a nominal fee ($100 upfront) for my time spent upfront.

                    With regards to the other post on hard money lenders, its important to remember that they are complately different than a regular lender. They typically have very strong LTVs and in most cases would prefer to liquidate than waste time working things out. Traditional lenders are typically under-secured, which is why they are more willing to work with borrowers.