Why would creditors accept a legally UNenforceable comfort letter, from borrowers who can't guarantee?
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[{"id": "goa7p2v", "text": "This is a Fakespot Reviews Analysis bot. Fakespot detects fake reviews, fake products and unreliable sellers using AI.\n\nHere is the analysis for the Amazon product reviews:\n\n&gt;**Name**: Contract Law Directions \n\n&gt;**Company**: \n\n&gt;**Amazon Product Rating**: 4.7 \n\n&gt;**Fakespot Reviews Grade**: A\n\n&gt;**Adjusted Fakespot Rating**: 4.7\n\n&gt;**Analysis Performed at**: 02-16-2021 \n\n[Link to Fakespot Analysis](https://fakespot.com/product/contract-law-directions) | [Check out the Fakespot Chrome Extension!](https://chrome.google.com/webstore/detail/fakespot-analyze-fake-ama/nakplnnackehceedgkgkokbgbmfghain)\n\n*Fakespot analyzes the reviews authenticity and not the product quality using AI. We look for real reviews that mention product issues such as counterfeits, defects, and bad return policies that fake reviews try to hide from consumers.*\n\n*We give an A-F letter for trustworthiness of reviews. A = very trustworthy reviews, F = highly untrustworthy reviews. We also provide seller ratings to warn you if the seller can be trusted or not.*", "replies": [], "depth": 1}, {"id": "goaaakm", "text": "All things being equal, if you have two loans in loss mit and you have to work on one at a time, you're going to foreclose on the one that isn't communicating.   If you get a letter from a borrower that says, \"yeah, I know I'm late, I have a plan, I'm working on it.\" that's about 10x better than an MIA borrower.  \n\nOn the personal guarantee, if you've got a company that's been in biz for 10 years, strong financials,  and has a 100 employees with good collateral, some other bank is going to lend to them without the personal guarantee, and the borrower isn't going to guarantee it anyways, they don't have to.  And borrower's going to go for  non-recourse too.", "replies": [], "depth": 1}, {"id": "goaamsr", "text": "If you only see a comfort letter are you certain the borrower \u201ccan\u2019t\u201d guarantee or could it be that it \u201cdoesn\u2019t want to?\u201d\n\nI see comfort letters with closely held companies and that don\u2019t want to disclose details to lots of third parties. \n\nBut I guess if you are certain that the borrower can\u2019t guarantee the loan then it\u2019s likely that it gets accepted as a means of diligence because the lender just wants to get the deal done.", "replies": [], "depth": 1}]