Jack Miller goes over why commercial banks will call in or default on a commercial mortgage loan even when the loan holder is on-time with the payments.
“Hi, this is Jack Miller at Gelt Financial. I try to be bubbly for my videos, but the truth is, this is a serious subject, and it really hits me home almost every day of the week. And I may be exaggerating about this a little bit, but probably two or three times a week, probably four, I talked to a borrower who’s current with their mortgage that they have with a bank. Usually, it’s a commercial loan, and the bank called their loan because of a technical default.
There’s an unknown secret that politicians and the news and no one’s speaking about today, and what it is; is the federal government, through the FDIC, is really making every underwriting decision on every bank loan in today’s market. And banks often have to what they call up a classified asset list or a TDR list. There’s probably, I’m guessing, a trillion or a couple trillion dollars on this list. And if it’s on the list, it’s on the hit list, and the banks are under unbelievable pressure, stemming down from the federal government, to put that loan in default and get it to paid off.
So, we do a tremendous business, and it’s very sad. I feel bad for these people who are good, hard-working, salt-of-the-earth businesspeople and owners of commercial real estate because of bureaucratic and governmental policy that’s been going on for decades. Their banks put them in default, and it’s really a shame, and our politicians should look into it. But it goes on all the time, and it’s not under this administration’s but going on for 15 years. And why I’m so passionate about it, because I had my loans that were perfectly paying banks put them in default. But it is what it is.
So, Gelt Financial is here for you. If you ever need a shift, your bank puts you into full and you’re paying, it’s unbelievable to think of, but it happens all the time. Give us a call at 561-221-0900 or check us out at geltfinancial.com. And remember, we’re not regulated by the government. We make common-sense decisions. We’re not being told to do by what the government does. And remember, every loan that’s being made by a bank today is ultimately being approved by someone at the federal government. That’s the reality people don’t want to talk about it, but it’s true. I’m sorry to bring you the news. I hope you’re not affected by it, but if you are, give us a call at 561-221-0900 or check us out on the web at geltfinancial.com. Don’t forget to like our videos and hit the buzzer or bell, and you’ll be made aware of new ones. Have a great day.”