What is a real estate workout?
Minneapolis real estate attorney John Koneck defines a real estate workout.
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When I’m asked the question of what a real estate workout is, the first thing I think of is what people commonly think of as a workout, like what I did at the gym this morning, getting on the elliptical machine and spending 45 minutes there. But in my business, in what I do as a real estate lawyer, it has a much different and more specific meaning. In the real estate world, what a workout is, is the process that a borrower and a lender go through to reach an agreement on a troubled real estate loan, a situation where the borrower can’t pay back the money according to whatever agreement the borrower entered into with the lender. And the process by which they try to reach an agreement and accommodation is called the workout process.