January 13th, 2015
Watch the training replay for January 13th, 2015.
Training Webinar Replay:
Click the “Play” button below to play this week’s training video:
Special Q&A Session with Don and D.A. Madden – Owners of Trinity Financial Services – Now in the Members’ Area under Resources.
Next Max ROI with Non-Performing Notes Workshop:
Thursday and Friday, January 22-23rd, 9-5pm
Location: Hilton Garden Inn, 17240 Bernardo Center Drive, San Diego, CA 92128
(note the address in the slides is incorrect – that is the NIS address)
Co-Invest Group Members Only “Workouts Wednesday"
Wednesday, January 21st, 1-6pm PST
Please RSVP ASAP to let us know if you can make it.
NIS Live 2015 – February 26-28th in San Diego
If you haven’t yet registered, please do so ASAP as the VIP seats are almost sold out:
If you haven’t yet booked your hotel room, the discounted rate expires soon – please book your rooms as soon as possible.
Main Topic: The Borrower Wake Up Campaign
You can only leave a message one time.
Mini Miranda and Bankruptcy verbiage:
"Please be advised that Capstone Funding Group is a debt collector, and information you provide to us may be used for that purpose. However, if you have filed for bankruptcy, we will abide by any applicable automatic stay, modification or discharge. Further, if you filed Chapter 7 bankruptcy, received a discharge, and this loan was not reaffirmed in the bankruptcy case, we will exercise only in rem rights as allowed under applicable law and will not attempt any act to collect, recover or offset the discharged debt as your personal liability."
Key Starting Point: The Loan Transfer Date
– Defined in the RESPA "Good Bye" Letter
– The starting point – "Borrower Wake Up" Campaign – Ground Zero
Day 1: TILA Letter
Day 2-4: Begin Calling the Borrower
– Call a minimum of THREE times the first week
– Call at different times on different days
– Call ALL numbers you can find until you are able to identify which numbers are valid
– Note: Be sure to log all attempts and results in your loan management database
– PERSISTENCE: Continue to call until property is bank owned or the borrower declares bankruptcy
Day 7: Send Out Your Introduction Letter
– Personalize your letter
– Add "my direct line" or "my personal cell number"
– Give a little history on your company’s willingness to help homeowners
– This letter will include all outstanding monies owed including UPB and any arrearages and late fees
Day 14-15: Send Out Your "We’re Here to Help" Hardship Package
– See Resources area for what we include in this package
Day 30-45: Send Door Knock Service
– Send only if phone call attempts are unsuccessful
– Send to property where you believe the borrower is living
– BEST PRACTICE: Use door knock service that allows for letter sequencing on multiple door knock attempts
Day 37-52: Review Door Knock Service Report
– Depending on the day the Door Knock Service was ordered
– Did they reach someone?
– Is it occupied? By who?
Day 45-60: Send Internal Breach Letter (Demand Letter)
– Demands it’s brought current
– Similar to what an attorney would use but you can fill out the info and send this
– These get a high response rate
Day 61: Send External Breach Letter
– This letter will be on attorney letterhead for the attorney or firm that you hire
– You are basically handing over what you’ve already done but it’s coming from official letterhead from the attorney
Once you’ve established relationship with the attorney, include copy of note, mortgage, assignment, total past due, and paid-to-date
Depending on state, you may pay $300-400 on average for a breach letter. Maryland for example is very expensive.
Day 75-90: Send Discounted Settlement Offer
– This is on a case by case basis
– Not every letter is the same
– Seasonal offers work well i.e. tax time or Christmas
1st quarter of the year is the best time to get payments. Tax letters work great
Christmas letter: Skip-a-payment letter can work great where they pay double in November for example so they don’t have to pay in November.
Day 70-90: Send Information to Management to Get Approval to Initiate Foreclosure
You might be "management" in your case
** Never Stop Trying to Contact the Borrower! **
To find the files for the "Borrower Wake Up Package", click over to the Resources page and click on "The Borrower Wake Up or ‘Shock and Awe’ Package"