Posted by edcopp on August 09, 2003 at 10:34:43:
First and most obvious is to just pay it off.
Often mortgagees include a prepayment penalty to protect thier income stream. Regularily I run into this in the case where the mortgagee is a retired individual who is using the income stream from the mortgage to as additional retirement to live on. The 7.5% yeild is very attractive to them in todays marketplace.
Try this: offer to move the mortgage to other property that you own (if you can). This would free up the commercial property without disturbing the income stream of the mortgagee.
You might also want to consider offering the mortgagee a part ownership in the project in exchange for his cooperation while at the same time protecting his income stream.
Offer some other concessions for a renegotiated mortgage note. Or if all else fails stop making the payments for a while. Then I am sure some sort of negotation will start.