A Strategic Guide for Lenders to Navigate Anticipated Distressed Loan Fallout

The steps outlined in this article offer a strategic guide for lenders, empowering them to navigate the complexities of loan workouts and enforcement actions with resilience and foresight.

7 minute read March 01, 2024 at 12:09 AM

Jay Steinman and

Karina Leiter

A Strategic Guide for Lenders to Navigate Anticipated Distressed Loan Fallout

Loan defaults and workouts are on the rise again due to a confluence of factors causing headwinds including: the surge in interest rates and real estate owners inability to refinance maturing loans at affordable rates; the continued rise in the cost of certain materials needed for renovation and construction; the staggering cost of flood and windstorm coverage and the impossibility of even obtaining coverage; and the loan maturing in the near future without satisfactory options to refinance or be otherwise paid off on time.

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