All Forum Posts by: Drew Perkins

The bank is probably not going to leave him hung out to dry.  They are in this together with him and don't want the assets back themselves.  I'm a former banker and have seen this a bunch.  They will do a couple of things:

1.  Renew the loan but seek additional collateral.  If there is another piece of property with some equity you might propose that (primary residence or investment property).

2. Renew the loan but really get aggressive with the amortization (shorten the loan to get to a respectable LTV quickly)---this would hurt of kill any prospective cashflow.

3.  Stick to their original feedback.  If this is the case and he doesn't have the funds then see if it can be renewed for 90-120 days so that you can shop the loan around to other lenders to seek a different solution.