Commercial Foreclosure Bailout Loans – Everything that you need to know

By Jack Miller|5 min read|Published On: October 3rd, 2020|

First know that you’re not alone. It is estimated that over 200,000 homes are being foreclosed on. There are plenty of well-intentioned, good, honest real estate investors and owners of commercial properties that are facing foreclosure and in financial distress.

Understanding Foreclosure

There are many reasons why a property and its owner would face a foreclosure. It’s not cut and dry or one simple reason. We are not going to go into the politics and causes of it now. But focus on solutions. When you are in this very scary and stressful solution you have options and decisions to make. We advise people to deal with things sooner rather than later as well logically. The longer you wait the less options you might have, its more expensive as well it’s much harder to work out a solution.

Some of the options people have are catching up on the payments and trying to cure the default or enter into a modification if you can and if the lender will allow it, another option is to seek bankruptcy protection, yet another is to sell the property and recover what equity you can. Also burying you head in the sand and doing nothing is an option as well. Sadly a lot of people take this option and only start to find a real solution when it’s too late or the damage is much greater then is should have been and they have less good options.

There is the option of refinancing into a foreclosure bail out mortgage or doing a sale lease back. It is these that we are going to focus on now.

As a starting point, keep in mind then when you’re in this position your lender is usually charging you a high default interest rate, late fees, legal fees and all kinds of other fees that will greatly increase what you owe and it grows higher by the day. With most people this also effects there personal credit score in a very negative way. Perhaps the greats cost is the stress this causes on people, this can’t be measured in dollars, but it’s very real.

What is a foreclosure bailout loan?

To simply define a foreclosure bailout loan, it is a mortgage loan that is designed in such a way that it will stop a foreclosure, payoff the existing mortgage with a new one. Yes foreclosure bail out mortgages are higher rates and more expensive than other permanent mortgages as well they usually are short term loans, designed to give you the time you need to solve the issue and pay it off.

The foreclosure bailout loans are usually short term loans allowing you the time you need to solve the issue and either sell the property when you’re not under distress or reestablished your credit and refinance to a lower rate long term mortgage.

Typically foreclosure bailout loans do not have credit score requirements and are primarily based on the collateral, value, equity and income and expenses of it.

They can be structured many different ways including the use of bankruptcy remote entity’s, sale lease backs, or just as a short term usually 1-3 year refinance. We highly encourage anyone dealing with this to have a great attorney representing them.

Should you opt for a foreclosure bailout loan?

It is true that losing your investment or commercial property to a bank in a foreclosure is a very scary thought. But the threat is very real, even if you have made all your payments on times banks can still foreclosure on you if they have a reason to put the loan in default and there are many non-monetary reasons. Yes, you can always opt for legal arguments to delay the foreclosure, the reality in the vast majority of the times this is only puts off the problem, makes it bigger and does not resolve it. During this time the debt usually increases, your credit is usually more damaged and it costs you a lot in attorney’s fees as well as unbelievable amounts of stress. Beware of attorneys who pound their chest saying it will be all right, just pay me.

Unfortunately, a huge number of people have faced this situation, sadly most don’t have great outcomes the primary reason is they want to long to act or because they think they don’t have any other option. This is not true at all!

Gelt Financial’s Solution

At Gelt Financial, we are aware that a lot of things happen in an individual’s life, but as long as there are equity and income or potential income, we can usually solve the problems. The good news is Gelt Financial can offer you foreclosure bailout loans through a simple and short application process.

After a quick evaluation of your requirements, we will be able to offer you the highest possible amount that will get the mortgage lender off your back and also save you from getting foreclosed. We are committed to offering simple and effective financial solutions to troubled homeowners and help them in avoiding foreclosures.

If you want to avoid foreclosure of your real estate investment and or commercial properties, the best option for you might be foreclosure bailout loan. No traditional financing institution like banks will offer foreclosure bailout loans. Gelt Financial is built on the foundation of helping people with financial solutions. We understand that people can come across unexpected crises amidst an unstable economy but we are willing to make things easier for them.