Loan Workouts
Graham H. Stieglitz
March 3, 2011
The Loan Workout is an inexact science in which a Lender and Borrower work together to resolve a troubled loan. The options available are only limited by the parties' imagination and willingness to cooperate. The range of what "is" a Loan Workout starts somewhere in the vicinity of a Forbearance Agreement, passes Receiverships and ends at Foreclosure. A variety of factors will help determine which neighborhood a Loan Workout ends up residing in - some are within the control of the Lender and Borrower and some are outside their control. Regardless of the acronym used for the Lender's Group that is handling the troubled loan (i.e. SSG, ARG, REMA, SAD, SAM, or SAG), the general methodology and best practices remains the same. Of course, the makeup of the collateral, history of the Borrower and Lender and many other distinct features make each Loan Workout a similar but wholly unique situation. These aspects make resolving troubled loans interesting, frustrating, rewarding and sometimes even fun.
