Commercial Loan Workouts

What is a Loan Workout?

There are various types of loan workouts available to borrowers. These may include:

• Refinancing debts, either with an existing bank making a new loan, by obtaining a new lender in order to lower the interest rate so that payments are smaller, to extend the length of the loan so that payments are smaller, or to extend the amortization period although the loan has a near term or mid-term balloon payment date.
• Debt forgiveness, which lenders sometimes agree to when a borrower demonstrates a lack of assets or of equity in assets, that assets are exempt from legal collection, or other similar reasons.
• Selling collateral, including through a “short sale,” where the lender agrees to release the collateral for less than the balance of a loan.
• Deeds in lieu of debt, also known as a deed in lieu of foreclosure, where the borrower turns over the deed to the property in lieu of a foreclosure taking place.
• Forbearance agreements, which frequently involve a lender agreeing to suspend or substantially lower payments, often for six to twelve months, to give a borrower a chance to reorganize business operations, explore a sale of collateral, or meet other goals that might benefit both bank and borrower.

At Robl & Bowen, we have extensive experience negotiating loan workouts with national, regional, and local banks, as well as finance companies, debt purchasers, and servicing agents. Clients are frequently surprised at the amount of negotiation that can occur with even national banks when trying to negotiate a loan workout.

How Do You Get a Loan Workout?

A loan workout requires working directly with a lender to renegotiate the terms of the loan at issue. It is imperative to move quickly after a default on a loan occurs, as a lender can begin its remedies quickly once a loan is in default. While lenders on commercial loans will frequently attempt to resolve issues with a business loan prior to proceeding with their remedies, having an Atlanta commercial loan workout attorney advising you through the process is imperative to protect your rights and interests.

A lender’s remedies can include acceleration of the remaining balance of the loan, foreclosing on property, and filing a lawsuit, among other remedies. However, when negotiations on resolving the loan begin before these actions are taken, a lender will frequently wait to exercise its remedies while those negotiations are ongoing if you have an Atlanta commercial loan workout attorney involved and advocating on your behalf. Business owners who attempt to negotiate with their lender on their own often find these discussions difficult to navigate while also working to resolve the business issues that caused a default in the first place. Having a commercial loan workout attorney on your side allows you to focus on fixing the issues facing your business while an experienced attorney advocates on your behalf.

Contact Our Atlanta Commercial Loan Workout Attorneys Today

If you require legal help on a commercial loan workout, do not hesitate to contact our firm. Our Atlanta commercial loan workout attorneys are here to assist you with all of your loan and mortgage legal concerns. Our professional guidance will provide you peace of mind knowing that your situation is in good hands. To book an initial consultation, contact Robl & Bowen today to learn more about how we can help you and your business.