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When a mortgage on a property isn’t paid, it can go into foreclosure. This is true whether we’re talking about a house or a piece of commercial property. If you are trying to avoid a commercial property foreclosure, we may be able to help you. This process can take a while, and our Long Island, NY real estate litigation lawyers may be able to help you work out a fair arrangement.

When Does the Commercial Property Foreclosure Process Begin?

A commercial property foreclosure begins when the owner of said property stops making mortgage payments or when the terms of the loan are violated. The bank has decided to cut its losses, take the property, and sell it off to recoup some funds.

Once the borrower has defaulted, the bank can decide to ask for all of the money back at once. So if you have a mortgage payment of $5,000 and a mortgage balance of around $300,000, you are not just going to be asked for each $5,000 payment you missed. You can potentially be asked for that entire $300,000 back, and the bank is going to want it as soon as possible. That can be a heavy lift.

Can I Fight the Commercial Property Foreclosure Process?

Fortunately, the bank does have to follow a process when foreclosing. They first have to notify you that you have defaulted. Then you are given a chance at “reinstatement.” This means making a mortgage payment and fixing your default status. You usually have just 20 or 30 days to do this. If you cannot make a payment, your property can be sold off.

You may also be able to negotiate with the bank. If business conditions or your economic situation has changed, it may be possible to ask for changes to your original deal. You could:

  • Agree to a repayment plan for back mortgage payments
  • Modify the monthly payment amount
  • Adjust the loan repayment period
  • See if refinancing at another interest rate is an option

Finally, you could agree to pay off the entire loan amount. If you have the funds available, this can ensure that you do not have to worry about foreclosure on this particular property ever again.

Do I Need a Lawyer?

You obviously do not want to lose an asset to commercial property foreclosure. An experienced real estate lawyer can help you evaluate your options and approach negotiations with the bank. They can also keep you reminded of important deadlines so that you do not lose your chance to fight the foreclosure.

Meet With Our Legal Team

If you are trying to avoid a commercial property foreclosure, we may be able to help. Contact David A. Gallo & Associates, LLP to set up a consultation. We will do everything that we can to help you protect your business interests and your investments.