Consider Long-Term Consequences Before Renegotiating Mortgage

If you're struggling, you may be considering renegotiating your mortgage. Although mortgage renegotiation may temporarily help your cash flow problem, be aware that it may not be a permanent fix.

The risk involved—and the amount of leverage you have—in renegotiating will depend largely on the type of commercial property loan you have: recourse or nonrecourse. Before entering into a mortgage renegotiation, it is critical to understand your loan and how a mortgage renegotiation will affect not only you, but also your obligations to your tenants under their leases.