Workout Agreements

Workout agreements are formal arrangements between a borrower and a lender designed to modify the terms of a loan due to financial difficulties. These agreements aim to avoid default or foreclosure by adjusting repayment schedules, lowering interest rates, or temporarily suspending payments. They provide a structured way for the borrower to manage their debt while assuring the lender of a greater likelihood of recovery. Essentially, they are negotiated solutions that help both parties navigate financial challenges while maintaining their respective interests in the loan.