The first key principle to a real estate workout: Integrity
Minneapolis real estate attorney John Koneck discusses his first principle to a real estate workout and explains why integrity is paramount.
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We’re talking about real estate here. Real estate mortgage loans. Anybody who’s had any experience with real estate as an owner, as a broker, lender knows the number one principle in real estate is location. Location, location. Where the property is. In a workout context, there’s another word that is the most important principle and it’s not location. The world is integrity. Integrity, integrity. A lender won’t mostly, almost always do any kind of workout with a borrower that it doesn’t trust. So what the borrower has to do is always act on honesty with a lender. That means giving the lender accurate information, not withholding information, not playing games with the lender because when you do any of those things, that creates a situation of distrust, and it makes a workout very difficult if not impossible to accomplish.