There are many different aspects of businesses in Florida. Companies must deal with the basics of the business such as selling their product. This includes manufacturing, packaging, shipping, marketing, advertising and other activities. Companies also must ensure their accounting is being done and they know their profits and losses. They need to deal with hiring and firing employees, payroll and other aspects of their labor force. However, in order to do these things, the company must have a building or buildings to conduct all these aspects of the business.
These companies can rent or purchase their property and buildings. When companies own buildings, they usually must obtain loans from various lenders to make the purchase. If business is going well, making the monthly payments is not an issue. However, if business slows down, figuring out how to pay back the loan can be difficult. If the company falls behind on payments, the lenders can foreclose on the property. This can really harm the business and may force it to shut down.
However, there are potential defenses to commercial foreclosures. It may seem like it is straightforward — if the company does not pay then the lender can foreclose. However, this is not always the case. The lender must have the promissory note in their possession. Sometimes these loans are sold and transferred between lenders and the one foreclosing may not possess the note. They can try to obtain a new one, but there are requirements that must be met first. Also, sometimes the lender is guilty of misconduct and therefore may not be allowed to foreclose.
It is very important for many businesses in Florida to have buildings where they conduct the various aspects of their operation. However, if the company is no longer able to pay the loan each month to the lender, there could be a foreclosure. This does not automatically mean that the company will lose the property though. There may be alternative options to address the debt owed, and the company could also attempt to sell the property first. At Payton & Associates, LLC, we have handled many of these matters and understand what needs to be done. For more information please visit the commercial foreclosure defense page on our website.