Commercial Loan Modification

How a Commercial Loan Modification Works

A commercial loan modification is entered into between you and your lender for the purpose of changing your current loan terms. In such a modification, the terms will be changed to more favorable ones that are more affordable thus allowing you to get back on track financially.

Modifications can include:

• Extending the length of the loan
• Reducing the interest rate of the loan
• Lowering the principal
• Amending scheduled balloon payments where these apply
• Other restructurings

Starting the Process

The best time to approach this process is before you become delinquent on your commercial loan so that you do not begin in arrears. Your first step would be to ensure that you thoroughly understand the existing terms of your loan documents and the options that may be available to you.

You will also need to figure out what term modifications will make it possible for you to keep up your payments while you continue your commercial operations. This all requires basic financial groundwork done so that you can negotiate the best deal.

Negotiating With Your Lender

In approaching your lender, you will have to demonstrate that the change in terms you seek will give your company the relief it needs to raise income and keep up or restore loan payments. Whether your negotiation with the lender works and the modification is approved will depend on various factors such as your credit and payment history, your equity in the property, your projections for future success, and more.

Putting together all this information and documentation can be a complex process which is why it is important to work with an attorney who is experienced in the process.

Preparing the Documentation Needed

At Fine Law Offices, we can help ensure that you understand your current terms, help you determine what new terms would work for you, help you prepare the documentation needed to show your lender that you will be able to meet the new terms, and create a comprehensive proposal for presentation.

Once this groundwork is done, we can use our experienced negotiation skills with your lender on your behalf. Where new terms are successfully negotiated, we can thoroughly review all loan modification documentation and advise you so that you understand all of your new rights and obligations.

Experienced Commercial Loan Modification Lawyers



Our firm has successfully negotiated more than 7,000 loan modifications for clients throughout the Tri-State area over the many decades since our inception in 1977. Let us put our extensive experience to work for you.