I’ve never missed a payment on my current loan at my local bank. Yet now my lender is making it difficult for me to refinance my 5 year balloon. How can Live Oak help me when my long-time local bank cannot?

Many lenders today have come under increased regulatory scrutiny to reduce their portfolio of real estate holdings. When this happens, banks will often use the “balloon” date as an opportunity to ask the borrower to refinance the debt elsewhere. It is not a reflection on your success or payment history, but a statement concerning the lender’s portfolio requirements. Or, some lenders are strictly real estate lenders. If the value of your property, as evidenced by a recent appraisal, has decreased you may be getting pressure to move your loan because your “collateral” package value no longer meets the bank’s requirements. You need to carefully ask a potential lender about their loan to value requirements and whether they will give you credit for the positive intangible assets in your business.