Business owners that are looking for viable commercial mortgage loans should look hard at SBA financing. These loans continue to close and relative to other sources of capital, like conventional bank loans, SBA financing is much healthier. In addition, SBA loans have many advantages over conventional financing, which we discuss below.

But first, let me address a few common concerns with SBA financing. The SBA has a bad reputation with many, as being overly cumbersome. And granted, if you work with the wrong bank, you will likely double the processing time to get the loan done. Many banks that are not fully focused on SBA loans, will have to have their loans underwritten twice, once by the bank, than by the SBA If you go with the right source, your loan will only have to be underwritten once.

The other common concern is that people have a misperception that if one bank declines the file that the loan request must not fit the SBA guidelines and is not eligible.?? People need to keep in mind that banks finance deals, the SBA only guarantees the debt for the bank And banks guidelines are almost always more restrictive than the SBA’s. If you have been declined, keep looking and find out why.

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If you are a homeowner in Phuket who was lucky enough to buy when mortgage rates were low in Phuket, you may have no interest in refinancing your present loan. But perhaps you bought your Phuket home when rates were higher or perhaps you have an adjustable rate loan and would like to obtain different terms.

Should you refinance your Phuket property?
If you do refinance your Phuket home, the process will remind you of what you went through in obtaining the original mortgage for your Phuket home. That is because, in reality, refinancing a mortgage is simply taking out a new mortgage with the same bank or a different bank in Phuket. You will encounter many of the same procedures and the same types of costs-the second time around.

Would Refinancing Be Worth It?
Refinancing your Phuket home can be worth, but it does not make good financial sense for everyone. A general rule is that refinancing becomes worth if the current interest rate on your mortgage in Phuket is at least two percentage points higher than the prevailing market rate for properties in Phuket. This figure is generally accepted as the safe margin when balancing the costs of refinancing a Phuket mortgage against the savings.

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Your budget should also include a reserve for making your mortgage payments to the bank in Phuket in the event of illness or loss of income in the future.

While over-obligating yourself or unexpected repair bills may jeopardize your ability to keep up your payments for your house in Phuket, the primary causes of foreclosure and bankruptcy in Phuket are unanticipated personal crisis. More homeowners in Phuket lose their homes because of illness, loss of employment in Phuket or marital problems than all other reasons combined.

An advance notice of a layoff means the family income will be severely cut back or eliminated in the near future. A major medical operation with a hospital in Phuket or property repair bill may be more than you can afford to repay, even with a short term loan from a financial institution in Phuket. You have to address the situation as soon as possible or risk losing your Phuket home.

There can be a number of local sources in Phuket that can assist you. Civic groups in Phuket may have assistance programs or may know what is available. Non-profit organizations in Phuket, may have special assistance programs. Local government and housing agencies in Phuket are also places to inquire for help and advise.

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No bank in Phuket wants to foreclose on a mortgage. Foreclosure costs the banks in Phuket more money than they can make back from the foreclosure sale. Therefore, lenders in Phuket do not foreclose in order to make money, but only reluctantly as a way of limiting losses on a defaulted loan on a property in Phuket. This is why, if you get behind on your mortgage payments, your bank in Phuket will work with you to devise a practical plan to cure the default and bring the loan current. In order to do so, however, you must stay in communication with your bank and be honest in evaluating your financial situation.

The willingness of the lender in Phuket to work with you to get past your current problems will depend heavily on your past payment record. If it shows consistently timely payments and no serious defaults, you will find the lender in Phuket much more receptive than if you have a record of unexplained chronic late payments.

If you are falling behind in your payments, or know that you are likely to in the immediate future, there are some steps that you should take before talking with the bank in Phuket about alternative payment arrangements.

First, you need to prepare a monthly list of your income and expenses in Phuket, using realistic figures based on your current financial situation. You will also need to put together a complete financial disclosure package, showing your Phuket assets and liabilities, including all debts and monthly payments and when they are due. Pay stubs, unemployment check stubs or other proof of current income in Phuket should be in the package, along with three years’ tax returns.

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