What is your experience with negotiating loan docs?
I'm a multifamily investor, was an all cash buyer and more recently started financing and refinancing. 1-2 million dollar loan amounts in several different portfolios.100 units total.
The following has been my experience with every loan, every single lender, and I'm wondering if this is normal?
Attorney reviews documents, there are dozens of comments regarding terms that let the lender fairly easily call the loan on a variety of technicalities. There are also terms that waive statute of limitations, extend certain liabilities in perpetuity, as well as various language that is very one sided to the lender.
The response from the lenders has invariably been that the docs are non-negotiable. The response from the mortgage brokers is that most borrowers don't even try to negotiate the docs.
My favorite example is a promissory note that had as a first sentence that the lender may call the note due at any time for any reason. Non-negotiable!
How normal is this?