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How to Prevent Foreclosure for Your Business

Are you facing business foreclosure? There’s nothing more stressful than thinking your business property could be foreclosed on. Luckily, there are more options than you’d think for people that are looking for foreclosure help for their business.

It’s possible to prevent foreclosure, but it’s important to act fast. Before you try anything, it’s important to find a foreclosure attorney near Los Gatos to help you throughout the process. They’ll be your best advisors and will do whatever they can to get the best outcome for you and your business partners.

It’s time to think about your options. If you’re facing business foreclosure, one of the following three things could be the way to save your business.

  1. Refinance Your Loan

If you’re having trouble keeping up on payments, refinancing your loan could be a great way to solve your foreclosure problem and save money in the future.

Having a lower loan payment could help free up cash flow for your Los Gatos business. This could help you catch up on other payments or invest in other opportunities.

Refinancing does have its benefits, but there are potential downsides to consider. They may require collateral to secure your new loan and attach prepayment penalties to your new loan. Your credit score could also take a hit from getting a hard credit inquiry.

If you’re interested in going down to the refinancing route, figure out how much you owe and speak with your attorney about the best way to handle your debt.

  1. Consider a Short Sale

Your Los Gatos business is facing foreclosure, but you were thinking of closing things down for a while. You might be ready to close your business, but the last thing you want is a foreclosure in your credit report.

If you choose to sell your business in a short sale, you’ll sell the business for less than what you owe. The debt collector might be losing a little profit, but they’ll be able to get paid fast.

If your main goal is to avoid foreclosure and you’re comfortable with selling your business, a short sale could be the answer you’re looking for. Your credit score will still be affected, but you wouldn’t have the hard inquiry of a foreclosure on your record.

  1. Personal Guarantee 

You don’t have the money to pay off your debt and prevent foreclosure, but you do have other valuable assets. Talk to your attorney about whether a personal guarantee is right for your case.

This is dangerous because it does come with a lot of personal risks. If you use your personal properties or other assets as collateral, there’s always the potential to lose them. That’s why this is only recommended for people that believe their foreclosure situation is temporary.

Prevent Foreclosure in Los Gatos and Get Help 

When you first learn about the possibility of business foreclosure, it can feel like you’ve reached the end of the line. Luckily, it’s possible to prevent foreclosure when you have the right people on your side.

We’re ready to fight for your Los Gatos business with you. Reach out to us so we can talk about the best way to avoid foreclosure for your business.