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Three lessons learned in loan workouts is that early, honest communication between lender and borrower often prevents small problems from snowballing into defaults. Flexibility, whether through extensions, interest-only periods, or partial paydowns can preserve value for both sides while keeping the loan performing.
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Early and timely communication between the lender & borrower.
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Flexibility with extensions & partial paydowns can preserve value for both parties.
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Transparency and documentation reduces the risk of disputes.
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