Commercial Foreclosure in West Palm Beach
When you enter a contract with a bank or other lender to obtain a mortgage to finance commercial real estate, the bank is protected by a security interest if you fail to make scheduled mortgage payments. While the mortgage contract enables you to borrow money for your commercial building, it also grants the bank the right to declare a default if you fail to make payments. A commercial foreclosure lawyer can help you make sense of the process.
Business foreclosure process
When you are no longer able to make mortgage payments, your bank initiates the business foreclosure process. The bank or lender will first serve you with a notice of default. If you can pay the lender the amount necessary to compensate for the default within a certain period of time, you can reinstate your loan. However, if you cannot, the lender either files a lawsuit to pursue a judicial foreclosure or pursues a non-judicial foreclosure by adhering to the terms and procedures detailed in your mortgage.
West Palm Beach business foreclosure prevention
If your business is being threatened with commercial foreclosure, different options exist for business foreclosure prevention. The options to stop commercial foreclosure include:
Bankruptcy: Business bankruptcy is a legal action that can allow your business to manage its debts, including mortgage payments as well as other debts. By filing bankruptcy, the debts your business accumulated can be eliminated through means such as reorganization of finances, consolidation of debt, or liquidation of assets. Due to Florida bankruptcy laws, when you file bankruptcy, an automatic stay is imposed on your debt, initially prohibiting any of your creditors from taking action to pursue the collection of your debt, including lenders seeking to foreclose your home.
Negotiations with lender: Your lender may be willing to compromise with you and offer you commercial foreclosure help. By negotiating with your lender, some ways that you may be able to stop commercial foreclosure of your property include changing the terms of payment, refinancing at a lower interest rate to reduce payments, reducing payments in exchange for a longer payment period and higher interest rates, or forgiving some late payments that have passed and compensating with a longer payment period.
Deed in lieu of foreclosure: A deed in lieu of foreclosure involves voluntarily conveying the property in question back to the bank or lender. By satisfying the loan that is in default, a deed in lieu of foreclosure allows you to stop commercial foreclosure if the deed is voluntarily accepted by the lender. It can be difficult to negotiate a deed in lieu of foreclosure with a lender, but hiring a commercial foreclosure attorney can increase your chances of obtaining an effective and successful deed in lieu.
Get the legal business foreclosure help you need from a West Palm Beach foreclosure lawyer
The Law Office of Michael A. Kaufman, P.A. creates effective legal solutions at an affordable cost. To discuss your legal needs for business foreclosure prevention with an experienced attorney, contact the firm at 561-207-8391 for a free consultation today.