The first 48 hours
- Get the real reasonCredit committee, bank concentration limits, appraisal shortfall, sponsor issue or market shift. The fix depends on which.
- Protect the deadlineTalk to the seller or current lender early, with a plan. Extensions are easier to get before the date than after.
- Re-size the loanUnderwrite to what lenders will do now, not what the first term sheet said.
- Go to lenders who can close on timeTypically debt funds and private bridge lenders first, with reports from the failed deal reused where lenders accept them.
Replacement options by timeline
| Lender type | What to consider |
|---|---|
| Private and bridge lenders | Acquisitions, renovation and lease-up where the repayment plan and closing deadline need close attention. |
| Banks and credit unions | Property cash flow, borrower relationships, guarantees and credit approval requirements. |
| Life companies | Stabilized assets, leverage and long-term ownership plans. |
| Agency lenders | Multifamily eligibility, operating history and required reports. |
| CMBS lenders | Property cash flow, reserves, loan structure and securitization requirements. |
| HUD lenders | Program eligibility and an application schedule that allows for agency review. |
Confirm the proposed closing schedule with the lender before relying on it. Credit approval, reports, title and loan documents can affect the date. Request a transaction-specific quote for pricing.
Reuse what you already paid for
Appraisals, Phase I reports and surveys from the first lender can often be re-addressed or relied on by a new lender, which can save two to four weeks. Ask for reliance letters early.
Related: what causes a lender retrade and bank concentration pull-backs mid-deal.
Frequently asked questions
My lender backed out before closing. What now?
Find out exactly why: credit committee, concentration limits, appraisal, or a change in the market. Then go to lenders whose appetite fits the deal as it is today, with a package that answers the issue up front. If the deadline can’t move, a bridge loan can close the deal and buy time for permanent financing.
What is a retrade?
A retrade is a lender changing agreed terms late in the process, usually lowering proceeds or adding reserves or recourse after the appraisal or credit review. Sometimes the answer is to negotiate; sometimes it is to replace the lender.
Can I get a seller to extend closing?
Often, with a credible replacement term sheet and a short, specific extension request. A replacement lender’s signed terms are the best evidence you can give a seller.
Other deadlines we work against
Financing on a timeline. Planned around your deadline.
Need to close a commercial real estate loan in 30 days or less? Bridge, debt fund and bank options by timeline, report lead times, and what to send today. $1 million to $200 million.
Acquisition financing, arranged inside the diligence window.
Acquisition financing for commercial properties under contract: get lender term sheets before your deposit goes hard. Bridge, bank, agency, CMBS and life company loans, $1M–$200M.
Construction financing for shovel-ready projects.
Entitlements and permits in hand? Construction loans for shovel-ready multifamily, industrial, BTR and mixed-use projects: bank, debt fund and construction-to-perm, $1M–$200M.
Upcoming maturities, handled early.
Commercial real estate loan maturing in the next 12 months? Compare refinance, extension, bridge and recapitalization options, and see what your next loan will size to.