July 2020

Navigating Pre-Negotiation and Forbearance Agreements in the New Economy: Considerations for Lenders

The Mortgage Banker Magazine
Herman R. Lipkis | Judith E. Kreitzer
Attorneys Herman Lipkis and Judith Kreitzer wrote an article for The Mortgage Banker Magazine describing how pre-negotiation and forbearance agreements can provide lenders with alternatives to litigation when managing distressed loans. Of the many consequences of the economic effects of the COVID-19 pandemic, increases in missed loan payments, payment deferral requests and modification demands have created additional stress for both borrowers and lenders. On the lender side, while litigation remains an option, the delays and expenses associated with it present significant risks, not to mention the additional complications brought by court closures. The authors present pre-negotiation and forbearance agreements as useful alternative strategies not only to avoid litigation but also to execute a successful loan workout and foster a stronger borrower-lender relationship.

READ: Navigating Pre-Negotiation and Forbearance Agreements in the New Economy: Considerations for Lenders

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