Re-underwrite the collateral, analyze the market, assess sponsor value, and examine the legal environment
Determine the appropriate work-out strategy, which may contemplate Loan Modification, Discounted Payoff, Forbearance, Foreclosure, Rights Enforcement, and/or Bankruptcy
Establish the appropriate management strategy, asset business plan, and budget requirements to achieve the value potential during the ownership period
Execute the asset plan and strategy through coordination of third parties
Monitor market conditions to evaluate current exit strategy and identify available alternatives
Implement the disposition strategy once asset value has been optimized
Additional Workout Solutions:
Negotiate with existing borrowers or bankers
Monetize the investment through a possible note sale
Plan for alternative ownership strategies
Preserve loan principal or enhance lender returns by restructuring loans
Evaluate need for additional transaction collateral to preserve security of the investment
