What is "workout" as it relates to real estate finance?



Answer:
It is a term used to describe what a secured party (a lender or other creditor) does to help recover the money which it has lent in connection with a piece of property. Really, it relates to bankrupt or near bankrupt entities. Creditors will work with the borrower to sell of the assets of the debtor or restructure the debt so that the debt can be paid without liquidating the debtor in bankruptcy.
I looked it up, and all I could figure out, was that it meant they are really busy and working hard on buying/selling homes (Just like someone working hard at a gym) Hope this helps somewhat.

Added: I think TarDane is correct..

The answers post by the user, for information only, BAnswer.com does not guarantee the right.

Other Questions and Answers:
  • Where can I find white pages listings for Omaha, NE?
  • should we ask to sign a lease or contract ?
  • Looking to sell our house - how do we get a fair appraisal & from whom?
  • what is the best way to find a rental property in central london?
  • I am thinking about selling my condo in playa vista CA. What data suggests prices will fall 25%?
  • What happens if a home you signed to purchase goes into foreclosure before the closing date?
  • Are you a real estate agent? If so how much do you general make?
  • I need advice on purchasing a weekly time share unit. Does this price and terms seem fair?