4. A creditor may seize the collateral in the event of a
mortgage default but may not claim against the
borrower for remaining deficiency.
5. It usually requires the borrower to make monthly
payment over a 20 to 30 year period or require a
balloon payment in a lesser time frame.
6. Common applications for commercial mortgage loans
are for the purpose of acquiring land or commercial
properties, expanding facilities or refinancing existing
debts.
7. It could also be used to expand in residential and
commercial investment and to develop the property in
other manners.
8. Applicants must satisfy the lender’s credit criteria
qualification which is usually the ratio of cash available
to the required loan payments.
