A “workout” is a loan which is on the verge of default or is in default and has failed to meet the lender's debt service or other covenants, and the lender and the borrower agree to a consensual resolution of the loan default. In the real estate context, a workout ...read more
Mortgage foreclosures can be expensive and protracted legal proceedings. Foreclosure in many states involves prolonged litigation, with the attendant expense of attorneys' fees and costs. During the time litigation is pending, unpaid interest is accruing on the loan and the real property taxes may fall delinquent. In addition, the borrower ...read more
Even though a mortgage foreclosure might be time consuming and expensive, there may be very good reasons not to do a workout. The first and most important is the “bottom line” --- can the real estate effectively be turned around and result in repayment of the loan more efficiently than ...read more