Lenders are refreshing their mortgage loan documents with provisions based on the “lessons learned” during the recent (continuing?) economic experience. One change is to add a service of process provision. The change is based on this basic lesson learned: when the tough times hit, borrowers and guarantors sometimes are hard to find. A few simply… Continue Reading
Tag Archives: negotiation
Negotiation Agreements: ‘What” Can They Cover? (3rd in a series)
Posted in Tough Times for Lenders, Training, Workout IssuesNegotiation agreements or discussion agreements are a fundamental building block, or (for some lenders) the starting line, for dealing with distressed debt and investments. Typically, when a loan is in imminent default or actually in default, a workout, restructure or settlement of a loan will not get off the ground until this agreement is signed… Continue Reading
Negotiation Agreements: ‘When’ Should They Be Used?
Posted in Tough Times for Lenders, Training, Workout IssuesThis is the second posting on this topic. The first posting covered the topic of "why" a negotiation agreement is used. And it generated some interesting comments on LinkedIn (see below). Now, let’s get to the question of – When should a negotiation letter or agreement be used? The answer to this question runs the… Continue Reading
Negotiation Agreements: Why Use Them?
Posted in Tough Times for Lenders, Training, Workout IssuesI’m often asked "do I really need to get a ‘negotiation’ agreement before we start discussions with the other side about the distressed or defaulted loan [or investment]?" The answer is simple: Yes. The challenge to the question, and in my crafting of the answer, is this word: simple. This posting will be the first… Continue Reading