Loan Modification Agreements (Commercial Real Estate)

Summary

This practice note provides an overview of modification agreements of commercial real estate loans that are not in default. A lender and borrower often agree to modify certain terms of their commercial real estate loan. The lender and its counsel must ensure that entering the modification agreement to change the loan terms does not affect the priority of the lender's security interest in the real property or any other collateral. This practice note discusses drafting and entering a commercial real estate loan modification agreement to make it effective and to preserve the lender's lien priority.