Six Tips Can Help Business Owners Avoid Foreclosure and 'Keep It'
By Nitin Shah Chairman & CEO, Embassy National Bank | January 22, 2012
Are you a hotel owner facing foreclosure or receivership? You're not alone. More importantly, you have options and strategies available to avoid foreclosure or receivership – or both.
In today's economic environment of dramatically declining revenues, hoteliers are among the thousands of small business owners who have fallen behind on their bank loan payments and are on the brink of foreclosure or receivership.
Even if a hotel loan is current, the value of underlying real estate collateral may have fallen to near or below the amount of the loan. This can cause a bank to demand immediate repayment of the loan and initiate foreclosure.
Such unfortunate scenarios are being repeated all too often across America and in many cases are being made worse because the loan collateral represents a large percentage of a hotelier's accumulated net worth – so losing those real estate assets literally means losing his or her life savings. At that point, once successful hotel owners can find themselves on the brink of bankruptcy.
While the threat of foreclosure or receivership is intimating, you can avoid losing your real estate assets. However, you must anticipate the problem, plan a course of action, and proactively maintain control of your property.
Here are six tips that can help you forestall foreclosure on your property so you can "KEEP IT."