Hermes Capital Partners

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Commercial Loan Modifications


Hermes Capital Partners utilizes its expertise to provide Commercial Loan Modification’s for troubled or distressed commercial mortgages or notes. We our are experts at underwriting, analyzing and negotiating with lenders, having arranged over half a trillion commercial mortgages in over 50 years of banking experience

Commercial loan workouts are a modification of the existing terms of the commercial loan, for distressed property owners or note holders. They are complicated to modify, and due to new tighter lending guidelines, many properties have trouble qualifying. Commercial loan modifications require an in-depth knowledge of the mortgage financial markets along with an understanding of bank credit underwriting principles, processes and requisites in loan modification proposals.

Types of Commercial Loan Modifications:


Forebearance
- A forbearance allows payments to be temporarily 'forgiven' - in fact, the amount past due is added to the back end of the loan, extending the term period without lowering payments - but the loan is then considered paid current.

Interest Rate Modification - In this scenario, your lender agrees to drop your interest rate - temporarily, or permanently. This often is done where the original mortgage carried a high adjustable mortgage rate.

Term Modification - This means that the total repayment period of the loan is extended. For example, a fifteen year note with five years already paid reverts back to fifteen years or even extends to twenty or more to spread the remaining balance out more and lower payments.

Principal Balance Reduction - Some lenders may agree to reduce the principal amount owed. This is often the solution to upside down or negative equity loans (where the property values have dropped sharply since the original purchase of the home).

Interest Only Payments - If the borrower just needs some breathing room, the bank may allow for an interest only payment period. At the end of this period, the remaining principle is refinanced.

Property types:

- Hotels, Motels, and Resorts
- Condominium and Apartment Buildings
- Malls, Strip Centers, and Restaurants
- Office Buildings and Complexes
- Industrial, Storage, Warehouse
- Manufacturing Facilities
- Health Care Facilities
- Mobile Home Parks
- Land Development
- Special purpose properties

How can you obtain a Commercial Loan Workout?


For a free consultation on how your loan could be modified call 323.617.5958 or send us an email at This email address is being protected from spambots. You need JavaScript enabled to view it.

We will discuss your particular situation, time lines and how we can help you to best structure your transaction

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