Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

Which distressed loan notice is sent before a qualified lender may act to protect collateral it fears is at risk?

April 26, 2017ACT collateral Distressed fears Lender loan Notice protect qualified sent

0

Posted

Which distressed loan notice is sent before a qualified lender may act to protect collateral it fears is at risk?

1 Answer

0

Posted

None. Regardless of whether the collateral is real estate or chattel, when there is a reasonable basis for believing collateral is at risk, a qualified lender does not have to send a distressed loan notice before taking legal action to protect the collateral for a loan. While the qualified lender does not have to provide a distressed loan notice before acting to protect the at-risk collateral, it must still send a distressed loan notice at the same time, or immediately after, it acts to protect the collateral. There is only one exception to this requirement: when the entire debt must be foreclosed upon to protect the collateral.