The purpose of triage is not to finish underwriting. It is to establish whether there is a financeable path and what can eliminate it. One person should own a single deadline sheet that counsel, borrower, broker, and underwriting can reconcile. Conflicting dates in email threads are a preventable closing failure.
1. Establish posture and deadline
- Identify every property, parcel, borrower, guarantor, and foreclosing lender
- Record the current legal stage and next enforceable event
- Attach the operative notice, complaint, judgment, sale notice, docket, receiver order, or bankruptcy petition
- Confirm whether court or lender approval is needed for new debt
- Record counsel’s best current sale date and how it was verified
2. Build the actual payoff
- Obtain a written payoff or reinstatement demand with a good-through date
- Capture per-diem interest and expected legal-fee updates
- List junior mortgages, judgments, taxes, municipal charges, and utility liens
- Identify receiver, bankruptcy, foreclosure-sale, or transfer expenses
- State which liens must be paid, subordinated, released, or insured over
3. Test collateral support
Use the most credible present-condition value. For an occupied asset, reconcile the rent roll to leases, deposits, arrears, concessions, and the T-12. For a vacant or owner-used asset, explain occupancy and carrying costs. Note deferred maintenance, environmental concerns, code issues, casualty, access, zoning, special-use limitations, or pending condemnation.
4. Confirm authority and control
- Map ownership percentages and managers
- Review the operating agreement and amendments
- Identify required member, partner, receiver, trustee, court, or lender consent
- Confirm good standing and signatory authority
- Separate the property owner from operating companies and affiliates
5. Make the exit measurable
Write the exit as dates, milestones, and evidence. For a sale, identify broker, pricing, marketing, and expected net proceeds. For a refinance, identify the required occupancy, DSCR, repairs, credit improvement, or litigation resolution. For partner capital, identify the source, amount, approval, and funding date.
Must every initial item exist before a file is opened?
No. The rescue file should be created immediately. Missing evidence appears in the checklist and determines when the matter is ready for initial review.
What if there is no rent roll?
Provide an occupancy statement and explain whether the property is vacant, owner-used, under renovation, or otherwise not producing tenant rent.
What if the auction date changes?
Update the file immediately and attach the document or written confirmation supporting the new date. A passed date should trigger confirmation, not silently close the matter.
Sources and authorities
Always confirm current authority and the rules of the applicable jurisdiction.
- Prudent Commercial Real Estate Loan Accommodations and Workouts — Federal Reserve, FDIC, NCUA and OCC
- Chapter 11 — Bankruptcy Basics — United States Courts
- 11 U.S.C. § 362 — Automatic stay — United States Code
- Topic No. 432 — Form 1099-A and Form 1099-C — Internal Revenue Service
Qualified Commercial Underwriting Desk
Credit and capital markets
The Qualified Commercial underwriting desk reviews commercial real estate, dealer and Main Street files daily. The Academy is written from that work (how files are actually read, priced and declined) rather than from a rate sheet.
Educational content only. Nothing here is a commitment to lend, an offer of credit, or tax, legal or accounting advice. Program terms, timelines and thresholds vary by lender, file and market conditions, and any figures shown are illustrative.