Default and acceleration in a commercial mortgage will often happen just as a function of the debtor’s failure to pay the payments when due. Beyond that, sometimes the debtor will try and transfer the title to the property, or the creditor may make the determination that the debtor is no longer financially viable, or the creditor might determine that the property, the value of the collateral, has fallen such that it’s no longer well collateralized. In any of those circumstances they may declare a default. It’s important in such a situation to contact a knowledgeable attorney, so that he can assess and make sure that the bank is acting in good faith.
* * * * * * * * * *
THIS BLOG IS INTENDED FOR GENERAL INFORMATION PURPOSES ONLY. IT DOES NOT CONSTITUTE LEGAL ADVICE. THE READER SHOULD CONSULT WITH KNOWLEDGEABLE LEGAL COUNSEL TO DETERMINE HOW APPLICABLE LAWS APPLY TO SPECIFIC FACTS AND SITUATIONS. BLOG POSTS ARE BASED ON THE MOST CURRENT INFORMATION AT THE TIME THEY ARE WRITTEN. SINCE IT IS POSSIBLE THAT THE LAWS OR OTHER CIRCUMSTANCES MAY HAVE CHANGED SINCE PUBLICATION, PLEASE CALL US TO DISCUSS ANY ACTION YOU MAY BE CONSIDERING AS A RESULT OF READING THIS BLOG.