What is the goal of a real estate workout?
Minneapolis real estate attorney John Koneck describes the main goals of a real estate workout are what the client wants.
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What is the goal of a real estate workout? Well, from a lawyer’s perspective, it’s accomplishing whatever the goal is of the client. And that goal may be different for a borrower from what the goal is for the lender. A successful workout requires that at least for purposes of the workout, they have a common goal. And the common goal might be the borrower is going to give the property back to the lender, a deed in lieu situation, and the lender will release the borrower. And there might be facts, there might be a context in which both parties would like that.
Another different goal in a different situation might be the borrower keeps the property, the borrower pays everything back to the lender, and the workout is about how the borrower’s going to do that. So it isn’t – I don’t think it’s possible to say that there is one common goal that every workout will have. A workout will be successful if the parties reach an agreement that allows each of them to accomplish whatever goals they were trying to accomplish.