Posted On:
May 21, 2008
Massachusetts Residential or Commercial Borrowers and Workout Agreements
A previous post discussed Massachusetts short sales. This post explains Massachusetts workout agreements. In Massachusetts an alternative to defaulting on a loan or entering foreclosure is to renegotiate the terms of your loan.
This may be called:
a) A workout agreement,
b) Loan restructuring,
c) Debt workout,
d) Loan modification, or
e) Other names.
Basically the lender (mortgagee) agrees with the borrower (mortgagor) to restructure the terms of a loan or the repayment period. The bank benefits by not proceeding with costly foreclosure and the borrower keeps the property but with loan terms they can handle. These arrangements may be available to residential or commercial borrowers or loans secured by residential or commercial real estate. In general, the sooner you seek a workout agreement, the better your chances of success are.
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