A "work out" simply means trying to "work it out" with your lender.
How does a workout work?
A true "work-out" starts when you notify your lender that the present loan terms aren’t working. A workout is only available if you have the ability, in a short period of time, to cure the problem that got you into default. In a broad sense, a workout is finding a solution, any solution, to your problem. However, the definition of a workout typically excludes bankruptcy.
Chapter Overview
- Temporary Relief
- Goal of a Foreclosure Workout
- Creating a Workout Plan
- Communicating with Your Lender
- The Lender’s Workout Objectives
- Parties to a Foreclosure Workout
- Example of Letter Requesting Deed in Lieu of Foreclosure
- Example of a Short Sale Letter
- Refinancing
How do I negotiate with my lender?