Commercial real estate lenders are facing a mounting challenge as they navigate a growing pipeline of bad loans. The industry has witnessed examples of owners walking away from distressed assets, but lenders are actively seeking solutions that don't result in foreclosure. The goal is to work with cooperative borrowers and restore their loans to performing status. Despite the impact of the pandemic, there hasn't been a widespread liquidation of retail and hotel properties. Experts anticipate an increase in loan workouts, extensions, and modifications to address the current situation.