Restructuring and Loan Workouts

Not all loans work out as intended. Even if the borrower had every intention of paying back the money they borrowed, and even if the lender did all of the proper paperwork, there is no way to predict everything that will happen in life. It is sometimes necessary to restructure a loan or go through a loan workout. In either way, using legal representation to secure a fair deal is a wise move. As a financial lawyer with a long track record in this industry, Rinaldi & Poveromo would make a reliable partner.


Restructuring a Loan Can Help All Involved

The terms of a loan are nothing more than a contract between two parties. When you agree as a borrower to take a certain amount of money from the lender, you also agree to pay it back according to a set of specified terms. If you don’t follow those terms over the life of the loan, there are penalties and other ramifications for not holding up your end of the deal.

With that said, it’s sometimes possible for both sides to agree on a loan restructuring that can help the borrower make payments and avoid a default. This will sometimes be preferred by the lender, as it avoids the potential outcome of having a bad debt that it will have to work to recover – and may only recover a portion of in the end. If you are interested in negotiating a loan restructuring agreement, contact Rinaldi & Poveromo today for assistance. We have experience on both sides of this equation, and our expertise can help you work together with the other party to find common ground. A fair restructuring deal can help the borrower get their finances back on track while the lender avoids losing a significant portion of the money it loaned out at the start of the deal.


The Value of Loan Workouts

When a foreclosure is bearing down, one option to keep the loan out of the foreclosure process is to explore a loan workout. Using a loan workout may be possible to avoid foreclosure entirely, which would be an ideal outcome for all involved. If you are looking at the possibility of foreclosure and want to explore all of your options, reach out to Rinaldi & Poveromo to discuss how we can serve you as a banking and finance lawyer.

Several adjustments can be made to a loan during the workout process. The precise way a given loan will be changed will depend on the needs of the borrower and what the lender is willing to do to breathe new life into this agreement. Possibilities include extending the term of the loan, rolling missed payments back into the balance due, or even altering the interest rate in some way. Of course, it will need to be determined if any of these changes – or a combination of these changes – will help the borrower continue making timely payments moving forward.


Make the Best of a Bad Situation

No one involved in a loan wants the agreement to end up at the point of a restructuring or a loan workout. But it happens, and all you can do at this stage is to make the best of it. Rinaldi & Poveromo will represent your interests in this situation, no matter which side of the lending equation you are on. For a banking and finance lawyer that is ready to fight for your cause from start to finish, get in touch today for a free consultation.