Information.  Information.  Information.  Lenders and servicers want it (they already are stuck with the "location, location, location").  Borrowers in distress might not want to furnish it.

What is a lender or servicer to do?  How can they get it?

Answer: include delivery of the information as part of the discussion or negotiation letter.

Here is a quick list of items that might be part of a negotiation letter.  Of course, you should always craft it for your situation; and discuss it with your lawyer –

  •  Borrower organizational documents, with all amendments (including offering circular if applicable)
  • Identification of the current property owner; and of each owner of Borrower
  • Current Form W-9 for borrower and all guarantorsindemnitors
  • Description of the physical condition of the property and any needed repairs
  • Occupancy level and rent roll (in form approved by lenderservicer)
  • Leasing concessions (and maybe lease summaries)
  • Management agreement
  • Leasing agreement
  • Project operating statements (prior ___ years)
  • Pro forma operating statement (current year)
  • Financial statements for borrower (including each owner holding more than __% ownership of borrower) and for each guarantorindemnitor); include cash flow statements (prior __ years)
  • Copies of bank statements (last __ months)
  • Copies of documents for any junior lien loan and of any other loans
  • Copies of any guaranty or indemnity agreements executed by each guarantorindemnitor for the benefit of other lender  (even "bad-boy" agreements andor for debt not related to borrower)
  • Information on items unique to the project ("smart" buildings; unique permits; etc.)

Understanding the legal, physical, financial and operating condition of the project, the borrower and each guarantorindenmitor is a basic task.

– what should be added to this list?

Please post your comments below.