What is one possible outcome of a borrower's financial workout with a lender?

One potential outcome of a borrower's financial workout with a lender is the adjustment of interest rates or loan terms. A financial workout typically involves negotiations aimed at making the loan more affordable for the borrower, especially during challenging financial circumstances. By lowering the interest rate, extending the loan term, or modifying the payment structure, lenders can help borrowers maintain their payments and avoid default.

This flexible approach benefits both parties: borrowers receive relief that allows them to keep their homes and make payments, while lenders improve the chances of recovering their loans instead of proceeding with foreclosure. In contrast, options like permanent loan forgiveness, immediate foreclosure actions, or refinancing with another lender may not directly relate to the workout process, as they either imply a lack of cooperation or a shift to another financing solution without an agreement with the current lender.