Many residential modification firms are rushing into the commercial space due to the Senate Bill 94, which protects homeowners from scamming residential loan modification firms.  The problem with these residential modification firms coming into the commercial space is that they do not have experience we do.  Residential and commercial real estate workout firms specialize in different entities; they have different industry forecasts and different rules and regulations.  Most residential modification deals require very little negotiation upon the modification firm.  Residential modification firms essentially send in a package that has been underwritten according to the guidelines of Freddie or FHA and approved by the loan modification company before being sent to the lender.  Because of the simplicity of this process, many companies claim a ludicrously high success rate. Accordingly, the work was easy as long as someone knew how to fill out the paperwork correctly.

Commercial loan modifications are a much more timely and demanding breed. They are concerned with actual property and cash flow rather than residential loans.  Generally, the loans are also riskier, leaving more at stake for the potential client. Most of the things Breakwater Equity does are completely foreign to the residential modification sector turned commercial loan modification consultants.   Breakwater Equity Partners does personal negotiations, financial analysis, comprehensive market research, and spends hours on collecting data and verifications in order to put a case forward. Thus, a firm comfortable with residential workout dealings would not be suitable for those of a commercial nature.

Be cautious when looking for the right firm to handle your commercial loan workout. Companies which boast having the ability to do both sides of the workout usually will not give your commercial properties the attention they need. At Breakwater Equity, we strive to complete a thorough analysis that will generate multiple strategies for bringing you a successful outcome. We realize that the commercial workout process is no easy task, and we would not want to see you lose your property by going to someone who does. When deciding on which firm you will hire to execute your loan work out, be sure to find one with a dynamic team of qualified experts as well as the commitment to their clients’ well-being, just like Breakwater.