Practical Legal Essentials: Fix, Forbear Or Exit (Video)

Long before a loan is transferred to a lender's Special Loans group, bankers are asked to help their customers navigate impending financial downturns. A banker whose focus may have once been sales and market management and then maintenance and observation, may now need to handle events of default and, often, gaps in reporting – all with a mind to helping the borrower out of a troubled situation that might otherwise see its risk rating downgraded.

When a loan is moved to a Special Accounts group, the approach toward administration and collection will vary from institution to institution. Some banks may be aggressive and seek to immediately collect as much as possible, whereas others may look to promote a turnaround.