Is it possible to mount a commercial foreclosure defense? It depends. According to Tampa Foreclosure, the only way to determine if a commercial foreclosure defense is feasible is by “looking at the Note, Mortgage and any other documents and scrutinizing every action by the lender.” This can be a very long, drawn out process. In Florida, commercial mortgage agreements have less statutory provisions to protect the borrower than residential mortgage agreements do. For this reason, the particulars of your specific mortgage agreement will determine whether or not a commercial foreclosure defense is possible.
Most commercial lending negotiations take place between lenders and large companies. In these cases, both parties have a lawyer present while drafting the agreement to ensure both parties are able to arrive at a fair agreement.
However, many small businesses and start-ups are new to this process and do not realize it is in their best interest to have a lawyer present while the Note and Mortgage is drawn up. In these cases, the mortgage lender will often draw up an agreement that gives them the maximum about of advantages.
This is why it is so important to review the specific Note and Mortgage in question before determining if a commercial foreclosure defense can be mounted. In some cases the mortgage might not have “clear default provisions.” Other times, the signed agreement might be different from the verbal agreement among the parties involved. These tricks make it easier for the bank to foreclose on commercial property.
For more information on mounting a commercial foreclosure defense, contact us. We can look over your specific Note and Mortgage and determine the best course of action for you.
