Loan Workout & Foreclosures

A sluggish economy has forced lenders and owners to face difficult decisions over defaulting loans. Should a lender pursue a workout with a commercial borrower, or call the loan and accelerate the debt? Calling the loan can be problematic when most real property is virtually unsalable in today’s economy. Seizure of personal property is another issue.

Maner Crumly Chambliss LLP represents lenders, loan servicers and buyers of distressed loans and properties, advising clients with respect to everything from transactional workouts to enforcement litigation. Our representation of lending clients extends to senior lenders, subordinate lenders and loan participants over a variety of product types ranging from land, multifamily, retail, office and hotel.

Workouts. A successful workout requires the ability to deal with a wide variety of issues. Our overall approach to workouts is “business oriented”, because it sensitizes the client to relevant legal issues and tailors the legal response to conform to the client’s common-sense business considerations. Our lending practice helps us to leverage our experience to advise clients of the risks, negotiating points and strategies of almost any workout. In connection with workout transactions, we will:

  • advise the client as to the need, viability, enforceability and desirability of pre-negotiation letters, loan modifications,
  • forbearance agreements, management agreements, deeds in lieu of foreclosure and repurchase options;
  • advise the client on the enforceability of loan documents and guarantees and the implications of inter-creditor agreements;
  • assist the client in gathering data relative to the current state of the borrower and the project;
  • conduct a forensics audit of the file (with a special focus on correspondence between the borrower and the lender), the existing documentation, the current status of liens and the current status of title; and
  • draft and negotiate necessary workout documentation.


Foreclosures. Our attorneys have experience in commercial foreclosure matters of varying sizes and degrees of complexity, and obtaining and collecting deficiency judgments. Our experience covers a full range of project types, including hotels, apartments, office buildings, shopping centers, and partially completed projects of various kinds. Foreclosed properties can also have title issues such as a senior mortgage, construction lien or tax lien that need to be cleared. We also handle confirmation actions for clients.