Workout


Definition of "Workout"

Bill Somers
Bill Somers Real Broker LLC

  1. Trying to resolve a problem between two individuals up with some compromise or common ground. It occurs more often during times of poor economic conditions. An example is a creditor offering an accommodation to a borrower to avoid a bankruptcy situation.
  2. A debt which is in default but which the creditor allows the debtor to rectify by lengthening the time period of the loan, reducing the interest rate, or some other accommodation. An example is a bank that elects not to foreclosure on a mortgage because of the homeowner's nonpayment, but agrees to stretch out the payments.

Have a question or comment? We're here to help.

 
 
 
*** Your email address will remain confidential.
 
 

Search Real Estate Terms

 

Popular Real Estate Terms

Payment Problems

When a borrower has difficulty making the scheduled payment. Position of the Lender: A good place to start is by understanding the position of the l ...

Workout Assumption

The assumption of a mortgage, with permission of the lender, from a borrower unable to continue making the payments. ...

Reserve Fund

Monies set aside in the event unexpected repairs are needed to a building or apartment. It may be in the form of an escrow account in which the selle ...

Brick Masonry

Method of constructing a brick, block, or stone wall using mortar in various overlapping patterns. The brick pattern is extremely important in terms o ...

Permit

Document issued by a governmental agency permitting the recipient to do something. An example is a building permit to construct a structure. ...

Waste

Misuse, alteration, destruction, or neglect of land by an individual right-fully in possession that breeds a significant and permanent reduction of it ...

Popular Real Estate FAQ

What Is A Down Payment?

A down payment is the money you pay up front for the purchase of a home. ...

If I Want To Buy A House And I Know The Property And The Seller Already Have An Agent, Can I Act As My Own Agent And Negotiate A Lower Fee?

You probably don't have the correct knowledge to represent yourself. The seller pays the real estate commission, not the buyer, and real estate commis ...

What Is A Lien?

A lien is a claim against a property. ...

What Is An Assessed Value?

The public tax assessor value of a property as determined for the purpose of taxation. ...

What Is A Lifetime Rate Cap?

A lifetime rate cap is an adjustable-rate mortgage (ARM), this cap limits the amount the interest rate can increase or decrease over the life of a loa ...

What Is A Debt-to-income Ratio?

A debt-to-income ratio is the percentage of a persons monthly earnings used to pay off all debt obligations. ...

Read why Real Estate Agent rates 5 Stars in 10 Agent Reviews
Read Reviews

Agents join here
Add our widget on your Website

Real Estate Advice

Large Real Estate Companies vs Individual Agents or Small Companies Top Five Reasons Your Home Offer was Rejected How to Defray the Hidden Costs of Home Ownership What Must I Disclose When Selling My Home? Real Estate Open House - The Dos and Don

FAQ

What do I need to know about Group Health Insurance? Who is a subagent? How Much Will My Principal Be? What do I need to know about Business Insurance? What do I need to know about Individual Health Insurance?