Class 17: Loan Workouts and Foreclosure Alternatives - Mar. 18 Flashcards
1
Q
What is a workout? (Q)
A
A workout is an agreement where a mortgagor can avoid foreclosure even after defaulting by working out their issues. For example, the parties might agree to refinance the loan over a longer period, change the payment schedule, modify the interest rate, or take other steps to facilitate repayment.
2
Q
What is the “friendly foreclosure”? (Bender)
A
The “friendly foreclosure” is where in return for the same types of consideration that may be given to induce a borrower to grant a deed in lieu, cooperation is obtained in not resisting foreclosure. (441)
