When most people think about foreclosures that threaten to seize real estate, they think about a family’s home. However, many businesses also sign mortgage agreements for commercial property. The fact is that the banks and other lenders who front the money for these purchases have the same right to seize land from businesses as they do from families.
An San Jose commercial foreclosure defense lawyer may be able to help business owners who have fallen behind on their payments. The dedicated foreclosure attorneys at our firm could explore your current financial situation, explain how foreclosure laws work in the commercial sector, represent your best interests during negotiations, and file formal legal challenges to your case.
Working with Businesses to Provide Financial Analysis
Businesses may fall behind on their mortgages for many reasons. For some, temporary economic downturns may have led to a short-term lack of funds. For others, systemic problems with their business models may make future profits difficult to imagine. By examining a company’s finances in detail, an San Jose commercial foreclosure defense attorney could help suggest a plan for the future.
Options that Allow the Business to Remain in Possession of the Land
Many companies will want to do all that they can to remain in their current location. When this is the case, a seasoned legal professional may suggest working with the bank to negotiate a modification to an original loan. Foreclosure proceedings are expensive for banks, and they will then need to sell the property to a new buyer. Instead, they are likely to be willing to offer new terms for a mortgage, often at a lower monthly payment.
Another option is to contest the legal processes that the lender has used to initiate the foreclosure. A combination of state and federal laws outlines how a lender must initiate foreclosure cases. If they have failed to follow these steps, a commercial foreclosure defense lawyer in San Jose could pursue appropriate legal action to stop the foreclosure and allow a company to remain in business.
Choices that May Allow a Business Owner to Escape Debt
Business owners may come to the realization that no amount of negotiation or legal action will allow them to continue to make payments on a mortgage. When this happens, it may be best to pursue bankruptcy as an option. For small business owners, a common Chapter 7 or Chapter 13 bankruptcy could see the discharge of business debt in the form of mortgage payments.
When a company is not tied to an individual’s finances, a Chapter 11 case will see a court overseeing the reorganization of a business’s assets. In some cases, this will see a court ordering the sale of a physical location in exchange for the discharge of debt. A professional foreclosure defense attorney in San Jose could help determine if a bankruptcy case is the best option to avoid the long-term financial penalties involved in a foreclosure.
Reach Out to an San Jose Commercial Foreclosure Defense Attorney Now
Businesses can fall behind on mortgage payments for a variety of reasons. Regardless of your exact circumstances, you need to act quickly to protect your property rights and long-term finances.
An San Jose commercial foreclosure defense lawyer could help explain your legal options and advise what choice may be right for you. This may include negotiating a new loan contract with your bank, fighting the foreclosure proceedings in court, and even pursuing a bankruptcy case that could help retain your rights to continue doing business or provide an escape from overwhelming debt. Contact them now to explore your choices.