Searching For a Reputable and Trusted Resource for Hard Money Loans? Private Money Utah Is Your Source!
Banks Calling Loans Due Puts Investors in Bad Position
5 Dec 2008 | 1 Comment | posted by Corey Curwick | in Success
I can’t tell you how many horror stories I’ve had to listen to lately where banks are calling Notes due from investors. Many of these investors are heavily invested, with a ton of cash and time into these deals. Fortunately, none of this defunct financing I helped put together!
But, I have been scrambling a little to find refinancing options for them while they sweat about paying back these Notes. Some of them, thinking they would have a chance to finish their projects and not have to worry about money, are now scrambling themselves to secure long term financing.
These are excellent examples too of when you may have to leverage your access to private money for the short-term. Choosing the right partners who will secure the long-term financing is crucial in this type of situation as well. You have to find out where your weaknesses are and correct them.
I would love to hear about any other examples where Notes have been called due and what the borrower did about securing alternative financing. Success stories always preferred! In the meantime, I’ll keep you posted on some of our stories where I’m working on trying to create a happy ending.
I encountered an interesting post by Donald Todrin on the topic of Banks calling Notes Due. However, instead of commercial or construction loans, Todrin addressed this threat to business owners on their business lines or other business loans. Many of his suggestions also apply to real estate investors, developers, and other investors.
In his post, Donald Todrin warns business owners:
“Please understand, the bank would prefer to put you out of business and liquidate your assets and experience significant loss, rather then working with you to assist your turnaround and emergence and get paid more in the long run, so the loan can be successfully serviced.”
Ouch!! Business owners and investors alike should heed his advice….
Posted by Blake Reese on December 5, 2008
Blog post source: http://dtod.wordpress.com/2008/08/27/the-signs-are-clear-the-banks-are-calling-notes-and-foreclosing-rather-then-working-with-you-are-you-ready/
This article was written by: Corey Curwick
1 Comment
Thank you for the mention, and this area of lending, hard money, is so important, the hard money lender may be the only way for borrowers to survive the calling of their notes. Clearly the brick and mortar banks are not lending, those that are require stellar finances and absurd requirements. The hard money lenders seem to be the voice of reasonableness. Despite high interest and high points, they get it done. Coupled with debt reduction, or forgiveness and we have a productive resolution for all involved.
Thank You again for your mention, I appreciate your spreading the word.