A “workout” is a loan which is on the verge 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 is an alternative to a mortgage foreclosure, and the lender and the borrower agree in a workout to restructure the debt or enter into forbearance agreements rather than to pursue remedies against a borrower through judicial or non-judicial foreclosure. A “loan modification” means any change to the terms of an existing loan, whether or not the loan is in default. In a forbearance agreement, a lender typically will agree to forgo legal remedies against the borrower who is in default. Usually forbearance agreements are only with respect to specific defaults. There are many reasons to consider a workout rather than move to foreclose a non-performing mortgage.