Why a Commercial Mortgage Renegotiation Is More Difficult than a Home Loan Modification

December 1st, 2009 by admin

A commercial mortgage renegotiation is more difficult to transact than a home loan modification because of various factors. First of all, the property owner is usually a business entity, such as a corporation or partnership, and not an individual person. This means that the process for ensuring that this particular entity is worthy of credit is more difficult. Secondly, the terms of the commercial loan are often different from than that of the residential variety. Because the length of time to repay the loan is shorter, the commercial borrower usually has to make a balloon payment at the end of the loan.

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