Commercial Property - Missed loan payments - Collections

Meghz

New Member
Jurisdiction
New Jersey
Hey, first off I would like to thank anyone for helping me out. I cannot afford a lawyer at this point so I am trying to resolve this matter before it reaches the courts. Even though I know that's not what debt collection lawyers want.

Anyway, I own a commercial property, and while switching banks I did not successfully set up automatic payment system and did not follow up with that. I am on paperless billing so I found out that information from a court order that I received from a debt collection lawyer firm. When I got the first notice in the mail, I called the bank and asked what the situation was, and they told me to make a payment of $____. I went in and made that payment, but that amount was returned to me a week or two later. Then I was handed a subpoena. I attempted to call the Bank's customer service and they are willing to resume the loan as per agreement, however the court order still stands.

I tried to reach out to the lawyer and he provided me with little to no information about the case and what the issues are. He mentioned that the taxes on the property weren't paid fully. I'm not sure if he meant property taxes or any other balance, so I looked up the remaining balance on my property, and it was paid in full. I emailed him with proof of that payment and also mentioned that I'm not sure what payment he was referring to, but the taxes are paid.

I wanted to know what I can do to resolve this matter without going to court. What my fees are compared to getting a affordable attorney, or attempt to get a public defender. The bank mentioned that once case goes to debt collection, we would have to deal with them and come to terms with them to reinstate the loan. Any information regarding this issue would be greatly appreciated, Thanks again in advance.

I own a commercial property, with a commercial loan, where I need to make the full loan to avoid court matters regarding a foreclosure. That property is residential as well, however the current loan has it listed as a loan to a commercial non-residential loan. This was included as a count in the court order I've received for missed mortgage payments / tax certificates against that property.

I am willing to refinance my home (which is fully paid for), in order to pay that commercial loan off however don't know what lender to refinance with. But because of my credit, finding another commercial loan on that property is not likely. (600) I've heard there was a government program that was stopped two years ago, but the practices still continue? HARP / FAS or FSA not sure what it is called, I might have miss heard over the phone. But a lawyer mentioned that there is a program that we could use to refinance the home.

What is the best type of loan I should pursue with high chances of getting it? A quick time frame due to resolving this legal matter as soon as possible? The pro's and con of fighting to keep my current loan or looking for another? The major difference between the commercial loan vs a refinanced home?
 
This matter is still under review, but there are two outstanding real property tax certificates against the property. In any event, I believe will be seeking repayment in full and I would suggest that the Borrower start the process of seeking alternative financing. Thanks


He responded with this, I don't understand how there is a tax certificate against the property if the taxes are being paid on time.
 
Then I was handed a subpoena.

I suspect that you mean a summons and complaint which means you were sued so it's already "in court."

If you didn't respond properly within the deadline specified, you risk a default judgment and potential foreclosure of the property.

I think you are in over your head and have no clue how to handle this. So, unless you want to go to that lawyer's office with your checkbook and say "How much to make this go away?" I suggest you get yourself a lawyer.
 
Any information regarding this issue would be greatly appreciated, Thanks again in advance.


You might wish to discuss BANKRUPTCY with a couple local lawyers.

You won't need one dollar to simply DISCUSS and INQUIRE about the efficacy of bankruptcy as it applies to your predicament.

You can also speak to a couple attorneys about your legal issues with the subject or entity that is currently annoying you.

Attorneys, most attorneys, provide the initial consultation at no cost or continued obligation.
 
Well I know its in the courts right now, I want to see if we can resolve the matter before hand. I can make the payments. The (tax certificates) liens were paid but not removed from the file so it remained as outstanding.

I want to still keep the property so bankruptcy isn't really the method I want to go with.

I think i'm looking at 3 options....

1. Getting a lawyer to keep my current loan active and to negotiate with the attorneys that are working this case against me since the bank is willing to continue the loan.

2. Finding another loan to pay my current bank off and continue payments. Negative side is I would have to refinance my own home, since I cannot get another commercial loan based on my credit. Higher interest and no tax deductions.

3. Resolving the tax certificates against my property, so they are not outstanding any more, talk to a higher up in the bank to see if they will allow me to keep the loan or the attorney that is working the case.

This is the first time this happened in 3 years, so it is a bit over whelming and money is tight so i'm trying to the best I can with what I got and the information I know. I understand this isn't a small issue and money is tight right now otherwise i'd be open to get a lawyer.
 
Well I know its in the courts right now, I want to see if we can resolve the matter before hand. I can make the payments. The (tax certificates) liens were paid but not removed from the file so it remained as outstanding.

I want to still keep the property so bankruptcy isn't really the method I want to go with.

I think i'm looking at 3 options....

1. Getting a lawyer to keep my current loan active and to negotiate with the attorneys that are working this case against me since the bank is willing to continue the loan.

2. Finding another loan to pay my current bank off and continue payments. Negative side is I would have to refinance my own home, since I cannot get another commercial loan based on my credit. Higher interest and no tax deductions.

3. Resolving the tax certificates against my property, so they are not outstanding any more, talk to a higher up in the bank to see if they will allow me to keep the loan or the attorney that is working the case.

This is the first time this happened in 3 years, so it is a bit over whelming and money is tight so i'm trying to the best I can with what I got and the information I know. I understand this isn't a small issue and money is tight right now otherwise i'd be open to get a lawyer.


You solved your own problem, bully for you.

If you pay off the loan, the problem goes away.

All you need to do then is make sure the new loan stays in compliance with the NEW loan's terms.
 
That new loan is not going to be a commercial loan, which is what I currently have with a decent flat rate, with the new one I would be paying more.

Trying to figure out pros/cons - expenditure if I get a lawyer to attempt to keep this current loan active or look on the market for another one. How much would I spend with legal fees with the risk of not keeping this loan active or starting a new loan and refinancing the house for that property. Also looking for that new loan takes up to 60 days to qualify. I don't know the legal process for civil matters and how their procedures are.
 
How much would I spend with legal fees with the risk of not keeping this loan active or starting a new loan and refinancing the house for that property.


The ONLY way to know for sure is to ask a few attorneys what it would cost to represent you.

What you're asking about might not be possible.

If you owe $5,000, an attorney won't be able to get the amount reduced.

If you can't pay today, even if the creditor would allow you some forbearance, only you know what you pay in the future.

You can talk to most attorneys initially at no cost to you.

Why not visit three or four and see what might be done to alleviate your financial burden?
 
So I called the bank and she referred me to the customer resolution center to explain my side of the situation. I don't know if they are actually trying to resolve the matter, or just trying to get information for court. I think I should give that a shot, I'm finding things out as I go along so bare with me, I appreciate your help.

Also the loan balance is around 450k out of 650k left on the commercial property. Not sure how much refinance loan I can get on my house that's valued at 550k-600k fully paid.
 
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