⚠️ What a Default Means
Missed payments or covenant breaches trigger lender remedies and a resolution plan.
Resolutions
Structured exits that protect capital
A default is a breach of payment or covenants, but secured collateral and lender rights allow a range of disciplined outcomes.
📝 Modification & Forbearance
Adjusting terms can preserve value and improve borrower performance.
🤝 Deed-in-Lieu / Short Sale
Structured exits when refinancing or recovery is unlikely.
🏠 Foreclosure & REO
Taking control of collateral enables orderly disposition.
🔁 Note Sale
Transfer the note to another buyer aligned with the resolution path.
🧠 Strategy by Asset
Decisions depend on market demand, collateral quality, and sponsor capacity.