Seeking Help for Commercial Foreclosure
If the person or company holding your property lien has threatened you with foreclosure, seek help from an experienced foreclosure litigation attorney. The lender may demand that you make payments on your mortgage without taking you to court. They may also exercise any rights under the contract to obtain collateral.
You may find that the lender is willing to modify the terms of your loan, so you can attempt to have a friendly conversation with them. It can sometimes be helpful to have a third-party mediator. This independent professional could help you and the lender work out an agreement. If that fails, then the lender may seek judicial foreclosure. Some lenders may feel that the risk is too significant and move directly to the judicial foreclosure step.
Official Notice of Default
You will get an official notice of default when the lender seeks judicial recourse. If the commercial property is income-producing, they may also notify tenants—letting residents know to make their payments to the lender instead of you.
Ensure that you discuss the terms of the initial contract with a competent foreclosure litigation lawyer to see what steps you can take and to make sure that the lender is upholding their end of the contract. Mistakes by mortgage companies happen, and these issues can affect the outcome of your case.
Court Case Filed
Once the lender files a court case, there is no difference between real and personal property. You only have 20 days to respond, so you must act quickly. If the lender has not made a mistake, they may petition the court to issue a final summary judgment on the foreclosure based on motions or affidavits filed. This judgment can be perilous because many judges give findings based on what the lender presents to them. This is particularly problematic for commercial buyers who do not seek experienced legal help.
The court may order that the property be sold in 30 days in a foreclosure sale. If the sale price is not high enough to cover the money owed to the lender, then they can seek a deficiency judgment and pursue the difference from you.
Having a foreclosure litigation lawyer is beneficial because foreclosure proceedings can take up to a year to resolve. During this time, your attorney will manage your case looking for the best ways to achieve your desired result. Contact Warren S. Dank, Esq., P.C. for information about foreclosure litigation services.