By "client", I assume you mean borrower? Donald J's answer is correct as far as it goes. Generally, when a buyer buys a mortgage/commercial loan, it is buying it at a discount from the remaining principal. To me, that means that the borrower may be in a position to renegotiate the terms of the loan. I have even seen a commercial property owner enter into a stragetic bankruptcy to force the new mortgage lender to negotiate smaller payments and other provisions that make it easier to make the payments in a down market. Unless it is a very small loan or not much is at stake one way or another, I would advise a borrower to approach his/her options with a qualified attorney only.
Jan 31, 2012