How to Get Foreclosure Bailout Commercial Loans

Foreclosure is a challenge many individuals and businesses have to endure when they can no longer pay a mortgage. When you can't repay your business loan, the bank wants to recover that loan money by any means necessary. For a small business, foreclosure could mean the end, but you can buy a commercial foreclosure bailout loan to protect your business.

Things You'll Need

• Tax forms
• Bank notices

Instructions

1. Go to Commercial Finance's website and fill out the foreclosure evaluation form to evaluate what financial shape your business is in. The website is geared towards business owners looking to save their businesses. Once you fill out the online query, submit it and wait for the results before taking the next step.

2. Understand the timeline once foreclosure is declared. Your business property goes on public auction after 3 months. Once the property is sold, you'll be too late to save your business.

3. Choose a bank or money lender that specializes in foreclosure loans for businesses. Find out the bank's requirements for buying a foreclosure loan; it often depends on the value of your building. Think about whether a foreclosure bailout loan is the right decision to save your business before you buy one.

4. Gather your business' financial records such as tax forms and bank notices to show your financial history. Determine your business' property value and give that to your bank or money lender. Let them figure out if a foreclosure bailout loan is right for you and what your payment plan would be.

5. Contact your bank or hard money lender to tell them if you want the bailout loan. Read all the forms that the representative puts in front of you to sign so that you understand what you need to do in order to save your business. Sign your name on the dotted line and begin making payments once you get the loan.

Tips & Warnings

• Keep in contact with your bank or money lender to check the progress of your foreclosure. Waiting for the right time to buy a bailout loan could cost you your business. Act quickly and get your bailout loan before too much time passes.

• There's a 1-year period during which you can redeem the property, but usually it's too late to do so. At that point, cut your losses and find a way to salvage your finances.

• Be aware that most hard money lenders can offer more flexibility in their loan requirements by making the value of the business higher than banks would, but there's always a catch. Hard money lenders charge more for foreclosure loans than banks do. Consider carefully whether to buy a loan from the bank or from a money lender.

• Don't buy a foreclosure bailout loan if your business can't be saved and your debt is too high for you to pay off. It might be more beneficial for you to declare bankruptcy or sell your business to save your financial future.

Resources

• Commercial Finance foreclosure application
• First Security Lending foreclosure handbook