Technically speaking, what we’re talking about when we talk about a commercial loan workout is likely to be a modification to prevent foreclosure. And when it comes to modification, practically any loan can actually be modified. What is required is that both parties agree to come to the table to talk and discuss points of the contract that was previously signed and agreed to. Actually, this sounds a lot easier and more straightforward than it actually is. In reality, especially if you’re working with a big box bank, such as any one of those that you see on TV, you’ll find that even getting to the table to discuss this sort of thing can prove to be very problematic, very difficult, and very sort of ambiguous about what the clear path is to get to this point.
And in fact, that might be the hardest thing; harder than the commercial loan review, harder than the internal commercial loan modification proceedings about whether or not to approve certain modifications; harder than all of those things might be actually convincing somebody or some people at the bank to hear you out, hear you and your concerns out. Now, at the very tip of the real estate and financial world, these things are ironed out in very procedural ways. There’s an established legal protocol for this sort of thing. And while hiring an attorney to send to your local bank’s branch and office might not be the best use of your scarce resources at present, there are a few things to draw from this.
