What to Do if Your Business Receives a Foreclosure Notice

One of the most frightening experiences for a property owner can be receiving a foreclosure notice in the mail. Foreclosure is the process by which a lender can recover the amount owed on a property by selling the property itself. Basically, if you are significantly late on the rent, your home loan lender or bank can seize your property and sell it in order to earn back the money they lost. We tend to think about it in the context of homeowners or families, but it happens just as often to businesses.

In most cases, a foreclosure won’t pop up out of nowhere. If you are regularly paying the rent on time, you shouldn’t have anything to worry about. Even if you are late on some payments or miss one, you should receive a lot of communication from your lender before it escalates to the point of foreclosure. You should not be in a situation where you miss one payment and immediately get kicked out. The best proactive advice we can give about avoiding one entirely is to be overly communicative with your lender, especially regarding any financial hardships you are experiencing.

If you do receive a foreclosure notice, it is important not to panic! There is always time to respond built into the notice, typically around thirty days. You will not receive a notice and then immediately lose your business the next day. When they receive the notice, most owners believe that their only options are to lose the business immediately or go deeper into debt by incurring large legal fees trying to fight it. This is not true.

The best way to solve a foreclosure is the best way to solve any problem: by talking it out. No matter how difficult you may feel your lender is to deal with, working with them is the best way to end up at a result that makes everyone happy. It is important to remember that your lender does not want to have to sell your property. They are not in the business of selling property. They are in the business of getting paid. Just the same as you would be much happier finding a payment solution and getting to keep your business, they would be much happier getting paid then having to sell a commercial property.

Your first step after receiving a foreclosure notice, following taking a deep breath, should be contacting a reliable and experienced attorney. At Andrea L. Gamalski Attorney & Counselor at Law, we have seen this situation plenty of time. We will work with you to find creative solutions, including negotiating with your lender and looking at mortgage modifications. We believe there is a solution that makes everyone happy – including you keeping your business and hiring us at a reasonable rate rather than breaking the bank.

Receiving a foreclosure notice is never a good time, but it is not the end of the world. If you have received one, reach out at soon as possible to start working on a solution. Contact Andrea L. Gamalski Attorney & Counselor at Law today! We believe in caring for you, so that you can care for your business.

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Andrea L. Gamalski Attorneys at Law

Andrea L. Gamalski understands how important it is to have a compassionate and empathetic family law attorney who fights hard for their clients in the courtroom–mainly because she’s been one of these clients herself.

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