Managing Defaults Through Forbearance Agreements
Many defaulting borrowers will look for any way to preserve their non-performing loans—including alleging that the bank promised to change loan terms, not sue, or the like. That compounds a bad asset with the possibility of a lender-liability claim. Banks can—and should—mitigate that risk through written forbearance agreements that clarify the parties’ rights and memorialize a plan to cure the loan’s defaults.
This presentation will discuss the various types of forbearance agreements, how to use them to strengthen a credit and its likelihood of repayment, and how to manage post-default risk. We’ll also discuss common pitfalls when dealing with post-default borrowers, ways to avoid lender liability, and how to put your bank and its loan portfolio in the best possible situation in a post-default environment.
Join the Ohio Bankers League and Michael Stultz of Meyer & Kerschner for this and three other webinar sessions on loan management:
Full Webinar Schedule
- Managing Defaults Through Forbearance Agreements (March 27)
- Liquidation Agreements as Litigation Alternatives (April 25)
- Ending Lending Relationships through Deeds in Lieu of Foreclosure (May 23)
- CRE and LLCs: Managing Hidden Risks in Lending (June 20)
Register for the webinar series here.