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It is no secret that many commercial real estate owners are experiencing cash flow problems as a result of the pandemic. These cash flow problems have created a wave of loan workout requests from lenders, and luckily—for many lenders—there are several tools available to help borrowers resolve distressed loan issues.

“Borrowers are turning to their lenders for relief, and in turn, lenders are facing a wave of loan workouts,” Fernando Landa, a partner with Crosbie Gliner Schiffman Southard & Swanson, tells GlobeSt.com. “There are several tools available to borrowers and lenders to resolve a distressed loan—including loan modifications, use of reserve funds, note sales, short sales, discounted payoffs, deeds in lieu of foreclosure and foreclosure. At this point in the cycle, we are seeing a substantial increase in loan modifications while other workout strategies are being shelved (for now).  Lenders remain open to working with cash-strapped borrowers, recognizing that the COVID-19 pandemic is unprecedented.”

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.

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