Borrower, Have You Started Preparing for Your Meeting With Your Lender to Discuss a Loan Extension or Restructuring? Part III

In Part II, Charles Aster discussed how the borrower needs to approach the initial meetings with the lender when its CRE loan is in the near future maturing and the borrower needs a loan extension or restructuring. The borrower needs to understand the lender's regulatory restraints so that the borrower's plan is not dead on arrival. Further, with its loan near maturity, the lender has the winning legal hand as there is no harder default for a borrower to overcome than a maturity default. However, the borrower also knows the Feds and lender want to work with borrowers, if possible under the 2023 Fed Policy Statement guidelines, to avoid foreclosures with possible immediate and future losses suffered by the bank. The borrower needs to reach an agreement with the lender for a repayment of the loan on reasonable terms that provides the lender with a reasonable probability of being repaid in full.

Borrowers, read Part III - What the Borrower Needs to Include in its Presentation and Plan here.