Home loan execution: “useful tips” for 2022

This article describes a series of writing strategies and techniques relevant to the settlement and execution of commercial real estate loans. The following is not a practical guide to executing the loan or restructuring the distressed loan. Instead, this article identifies some of the current solutions and ideas that have been observed, implemented, and proposed during this pandemic-affected training cycle. These are “Quick Tips on Executing Home Loans for 2022”.

Pre-workout agreement

Consider the article (also by this author) in the New York Law Journal (The “pre-training” agreement in loan negotiations (September 17, 2019)) for a summary of the terms and provisions of the pre-trade (or pre-workout) agreement that is fairly market-standard or accepted. In short, by preserving in writing the status quo between the parties, this agreement is designed to (1) protect the lender against the defaults of the lender’s liability defenses and claims that allegedly arise during discussions, and (2) open the way for a risk-free negotiation, exchange of ideas, proposals, concessions and improvements, none of which would be binding until a written agreement has been approved and implemented by all. (For a fairly comprehensive discussion of swapping concessions for improvements in troubled loan settlement, see this author’s article, Trading Upgrades for Concessions: An Overview of the Modern Lending Program, published in the New York Law Journal on June 19, 2020.)

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