When a construction loan stops working, the answer is in the project — not the payoff
We represent lenders, servicers, and note holders. We do not represent borrowers.
Resolution advisory for lenders, servicers, and note holders on defaulted residential development and construction loans.
ReGround asset resolution.
A principal-led resolution desk
The application is used to analyze, price, structure, and document the resolution of defaulted residential development and construction loans. It does not lend, fund, or place capital.
Every file is led by a principal. You deal with the decision-maker, not an intake team.
Four ways a loan gets fixed, in the order they are tested.
Each rung is computed from the figures on the right. The first rung that works for both parties is the recommendation.
Modification alone leaves a funding gap of $2,184,000 against the independent cost to complete.
The lender has advance appetite and completed value of $31,082,000 net of senior items exceeds the enlarged claim of $22,420,000 with cushion, so the asset finishes on the existing platform.
The lender will restructure internally and completed value net of senior items clears a new loan of $20,584,000 with a 25 percent cushion.
Outside capital can fund the remaining $10,054,000 and retire principal within value net of senior items and remaining cost ($21,028,000).
First working rungAdditional advances from the existing lender
Preliminary position
Change a figure and the ladder re-tests.
Synthetic and illustrative. This is a screen, not an analysis: the rungs are rules of thumb applied to your inputs and are not advice or a projected outcome for any party. Nothing here is stored or sent.
Everyone prices the payoff. Nobody prices the project .
The loan is past maturity. The reserve is exhausted. The borrower has stopped drawing, and the lender has stopped advancing.
The lender's budget residual is not a cost to complete. It is a line item from a budget written before the file went into workout, and it almost never includes the contingency, carry, and closing costs that a real completion requires.
The borrower knows how to finish but no longer has the money or the lender's confidence. The lender knows the payoff but not the path to get there.
What the payoff math misses
- Accrued at default rate vs base
- Senior obligations ahead of the loan
- True cost to complete with contingency
- Whether the borrower can perform
- The value at completion and at stabilization
ReGround turns that list into a decision.
From intake to a signed solution in four steps .
Intake
Ten minutes of structured questions about the loan, collateral, budget, and parties. No documents required to start.
Review
We build the claim, lien stack, and an independent cost to complete. The borrower is scored for capability.
Solution
Four rungs are tested in order. The first rung that works becomes the basis of the exit plan and structure.
Execution
A written engagement with ReGround Asset Resolution governs any brokerage, advisory, or transaction work.
Lenders, servicers, note holders, and acquirers.
The problem, from your chair
You advanced against a project that stopped. The bid on the note is thin, the default-rate accrual is compounding, the budget residual on your books is not a cost to complete, and nobody on your side can read the borrower. You need an independent view of the claim, the lien stack, the true cost to complete, and the borrower's actual capacity to perform — before you decide whether to advance, modify, refinance, sell, or enforce.
Our edge is thirty years on the sponsor's side of the table. We know how developers think, where the real numbers live, and what a borrower can actually perform at — which is what lets us bring the borrower to a consensual outcome on the lender's behalf.
Request a Workout AssessmentAcross the residential development and construction cycle .
We analyze and price loans tied to the full range of residential collateral — from raw land and finished lots through ground-up construction, for-sale product, and build-to-rent communities.
The market, the players, the methods and the return of discipline in resolving defaulted development and construction paper. Twelve pages, data as of August 31, 2026.
Four ways a loan gets fixed, in the order we test them .
ReGround Smart™
Product suiteEvery rung below is powered by the same underwriting engine we run across the portfolio — named and versioned so a bid can always be traced back to the criteria that produced it.
The computed bid recommendation for a loan — lower-of-caps output with the governing constraint labeled.
The versioned underwriting policy console every bid is priced under.
Lower-of-caps waterfall view — every constraint side by side, governing one highlighted.
Full-book aggregate repricing — every loan recomputed under current criteria, rolled up with variance.
Scenario and goal-seek modeling — IRR sensitivity, exit timing, and structure at the relationship level.
Automated platform and data-quality check — schema integrity, stale appraisals, bid drift.
Per-loan deep analysis — every input, haircut, and note behind a computed bid.
Tracked, counterparty-facing delivery of bid packages, tear sheets, and loan files.
Completion advance sized against the independent cost to complete plus contingency, funded in priority ahead of the existing balance, with a new interest reserve and a sponsor contribution alongside.
The lender has advance appetite and completed value net of costs exceeds the enlarged claim, so the asset finishes on the existing platform.
- Retained, with a required cash contribution
- Contribution applied: 1,400,000 dollars
- Residual after payoff of the enlarged claim
- Advance sized at 8,173,200 dollars
- New interest reserve funded at closing
- Loan remains eligible for the existing facility
Lender-side fallbacks
When no rung works, the analysis turns to enforcement alternatives: discounted note sale, deed-in-lieu, foreclosure to REO and completion, or collateral sale as-is.
Refinance
Bridge or long-term loan once the project stabilizes.
Sale
As-completed sale or as-is collateral sale.
Five-year hold
Default exit case: 60-month hold with participant classes.
Figures on this page are synthetic and illustrative — a representative $18.4M loan run through the engine's public shape, not a live loan or a calibrated coefficient.
Built around the analysis, not the pitch .
Claim and lien position
UPB, accrued at base and default rate, protective advances, and the lien stack in priority order.
Independent cost to complete
Owner figure and lender residual recorded; an independent hard, soft, and contingency estimate governs.
Borrower capability
A scored assessment that decides whether the resolution keeps the borrower in place.
Resolution ladder
Modification, additional advances, internal refinance, third-party takeout or sale — each with the lender's recovery shown.
Exit plan and hold pro forma
Refinance, sale, or a hold of up to five years with participants and a five-year pro forma.
Case workspace
Document vault, diligence checklist, information requests, milestones, and dated reports.
You don't need another broker opinion. You need the numbers your counterparty will accept .
Payoff math
- Discount to unpaid principal
- Lender's budget residual
- Default-rate accrued as leverage
- Borrower as the problem
- One outcome: payoff or foreclosure
Project math
- Value at completion less senior obligations
- Independent cost to complete with contingency
- Accrued split into base and penalty, priced separately
- Borrower capability scored and, where it holds, retained
- Four rungs, three exits, the lender's recovery under each
Forums are where you go to talk. ReGround is where you go to decide.
Three outputs, each dated and marked with a data-as-of date .
Preliminary Review Summary
A short, dated memo within days of receiving the loan file: claim build, lien position, cost to complete, and the likely working rung.
Workout Assessment
A full analysis of the four rungs, the exit plan, the lender's recovery under each path, and the conditions required to move forward.
Restructure or Discounted Payoff Proposal
An internal or released proposal with structure and a data-as-of date, prepared under broker-of-record attribution.
Internal versions include Principal-only assumptions and structure. Released versions show only the material directed to that party. All figures are synthetic and illustrative.
A principal-led workout desk
ReGround Asset Resolution is a principal-led workout desk. The application is used to analyze, price, structure, and document development and construction loans in workout. It does not lend, fund, or place capital.
Every file is led by a principal. You deal with the decision-maker, not an intake team.
You deal with the principal, not an intake team.
Questions before you submit .
ReGround Asset Resolution, under a written engagement. Submitting information through this site or application does not create one.
No. Lenders, servicers, note holders, and acquirers only. We deal with the borrower on your behalf — we never represent them.
No. ReGround produces analysis. Any transaction is brokered separately under its own written engagement.
Only ReGround staff, and only the items you release, to the parties you name. The other side does not see your uploads or messages without a logged release.
Analysis is available nationwide. Transaction services are confirmed at intake.
No. Commercial, business-purpose development and construction loans only.
Intake is under ten minutes. A Preliminary Review Summary typically follows within days of receiving the loan file.
Analytical engagements are fee-based; brokerage engagements are set out in the engagement letter. Nothing is charged for intake or the preliminary review.
Your next draw might not need a different lender. It might need a different structure.
Intake takes under ten minutes. Nothing analytical is published, and nothing you submit is visible to another party without your written direction.
Start IntakeSubmitting intake information does not create a client or brokerage relationship. A written engagement with ReGround Asset Resolution is required before any transaction work.
The firms that resolve construction paper alongside us.
A curated, disclosed set of service providers in the RG360 directory — the firms our lender and servicer users actually engage when a project goes sideways. Sponsored placements never touch the analysis.