This one-hour seminar will discuss the considerations, from Lender and Borrower perspectives, in dealing with defaulted commercial real estate loans. The discussion will cover forbearances, workouts and restructurings, including strategies to mitigate potential legal risks of lender liability, the use of pre-negotiation agreements, the importance of setting and managing expectations, and the need for effective communication. The discussion will include descriptions and analysis of the various forms that successful workouts typically take, including forbearance, debt service deferral, waiver or modification of covenants, conditions and requirements under the loan documents, new or additional loan term extensions, and discounted payoffs. The seminar will also present an overview of what borrowers should expect during the workout process, including discussions of the likely process and timing, various other parties that may be involved, and the importance of planning and preparation for both balance sheet loans and CMBS loans.
Recorded at the Real Estate Institute in November 2023.