Commercial Loans · Gay-Lynn Chavez & Francisco Williams, CCIM

Commercial loan coming due, or already past its maturity date?

A loan that comes due all at once is not the same as a missed payment. The rules are different, and so are your choices. We help commercial owners across Southern California compare an extension, new financing, a sale, or a deal with the lender. Free first call. Plain answers, no pressure. Once you hire us as your agent, we represent you — not your lender.

Request a free call Take the 1-minute check Call Gay-Lynn: (562) 858-7065Call Francisco: (213) 880-8107

Maturity vs. Missed Payment

Why a maturity default works differently.

Missed payment

Behind on monthly payments

For some missed-payment defaults, California law lets you catch up the overdue amount (reinstate). That right generally ends five business days before the sale (Civil Code §2924c).

Maturity

The whole loan has come due

At maturity the full balance is owed at once. Catching up on past payments may not cure it. What must be paid comes from your loan papers, so ask your lender and a lawyer of your own for the payoff amount in writing.

Your Options

Five paths when a commercial loan comes due.

Each path depends on the property's value and income. We start with a written review of both, so you see the numbers your lender sees.

01 · Through the Lender

Extension or Modification

Ask the lender for more time or new terms. Lenders weigh the property's income, its value and your plan to pay off the loan. A written review helps that conversation.

02 · New Capital

Refinance or Bridge Loan

A new loan from another lender may pay off the old one, if you qualify. A short-term bridge loan can buy time to lease up or sell. Funding depends on the new lender's review.

03 · Sell

Sale Before the Auction

If the property is worth more than the payoff, a sale may leave you money after the loan and costs. We show you a net sheet first. The price is not guaranteed.

04 · Debt Market

Discounted Payoff or Note Sale

Some lenders accept less than the full balance to close out the loan, or sell the loan to another investor. If your lender is open to either, we help set value and bring in qualified buyers or capital partners.

05 · Voluntary Transfer

Deed in Lieu

Giving the property back to the lender instead of an auction. The lender decides whether to accept it. It may not end a personal guarantee, so have a lawyer of your own review it first.

We are real estate licensees, not a law firm, and we don't give legal or tax advice. If you need legal advice, we can refer you to an independent attorney.

Common Questions

Commercial loan maturity questions.

What is a maturity default on a commercial loan?

Most commercial loans end on a set date, called the maturity date. On that date the whole remaining balance comes due at once (a balloon payment). If it is not paid or extended, the loan is in default even when every monthly payment was made on time.

Can I catch up on past payments to cure a maturity default?

Often not. The right to catch up (reinstate) under Civil Code §2924c covers some missed-payment defaults. When the whole loan has come due at maturity, the lender may require the full balance instead. Ask a lawyer of your own what your loan papers require.

How early should I start if my loan is coming due?

As early as you can. A refinance, a sale or an extension request each takes time to put together, and lenders review a plan more seriously before the maturity date passes than after.

Does a personal guarantee change my options?

It can. Many commercial loans include a personal guarantee, a promise to pay the loan yourself. A deed in lieu or a short sale may not end what you owe under it. Have a lawyer of your own review that personal guarantee before you choose a path.

Can an open escrow stop a commercial trustee sale?

No. An offer or an open escrow does not stop or pause the auction by itself. Only your lender, the trustee, or a court can change a sale date.

More on commercial options: Commercial distress · Los Angeles County · Orange County · Inland Empire

Talk With Us · Free First Call

Speak directly with Gay-Lynn Chavez or Francisco Williams, CCIM.

We serve these seven Southern California counties: Los Angeles, Orange, Riverside, San Bernardino, San Diego, Ventura, and Santa Barbara.

We are real estate licensees, not a law firm, and we don't give legal or tax advice. If you need legal advice, we can refer you to an independent attorney.

Request a free call Take the 1-minute check Call Gay-Lynn: (562) 858-7065Call Francisco: (213) 880-8107