Part 3/4:
When a lender chooses to extend the loan, it often involves keeping the same terms while negotiating additional collateral or cash reserves. This approach allows both parties—the borrower and the lender—to sidestep the hassle of selling a depreciated asset. By doing so, lenders are engaging in what some may describe as a form of "pretend," as they do not fully reevaluate the asset's market value but instead rely on a hopeful future.