September 2nd, 2014
Watch the training replay for September 2nd, 2014.
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Start – Call introduction
2:00 – Announcements
4:44 – Guest Expert Introduction – Saprina Allen
Waiting for Collateral Files
6:53 – What you can do before having your collateral package?
- Learn more about your borrower
- Google their name
- They might own a business
- You might find out that they are deceased
- You might find what social media they belong to (Linkedin can tell you where they work and live)
- NEVER NEVER EVER reach out to a borrower through a social media in contacting them in reference to collecting their debt
- Knowing more about your borrower will help you think about what directions you could possibly go with with your borrower.
10:00 – Top three things to look for in a credit report
- Verify that the address matches
- See if there are other mortgages or multiple mortgages
- Inquires that are happening on their credit report
- If they are pulling credit for qualifying for a rental, you know that the borrower has given up or they are emotionally detached from the property if they are already looking for some place else to live
- You know when to jump in and rescue them before they are all the way out of the property
11:33 – Should always to a BK check every 30-45 Days on all of your borrowers
- Two Key things you must to do with a borrower who has filed bankruptcy so you can protect any interest you have in your loan
- If they have already filed or are in a 13, you need to be able to file a transfer of claim
- If they file after you purchase or while you are waiting on your collateral, you need to file a proof of claim
13:00 – Google search your property address
- If it is listed, you’ll be able to find the MLS#
- Make contact with the listing agent to notify them that you are now the new 2nd lien holder (or the mortgage holder) in case any negotiations happen to take place
You Have Collateral Files
14:34 – How to Calculate Arrearages?
- General Guidelines
- Requesting paid to date
- Requesting last payment date
- What must be included in your collateral file:
- Deed of Trust
- Any Assignments
- Any Alongedges
18:19 – Boarding your collateral files with a servicer – Digital vs hard Copies
- Original documents need to be stored in a fireproof safe
- Benefits of using a custodian
- What additional information to request from a custodian:
- Any servicing comments or notes
- Copy of the 1003 from origination
- Any documents that were kicked back at the time of origination
- Any correspondence from the borrower or to the borrower
- Request any subordinations that you may have received from the senior lender
- Any pay histories
Min 22:17 – Verify that the previous lender did not initiate foreclosure in second position
- You need to be able to reach out to that attorney to see where the foreclosure process is and also see what the cost is up to the date that you bought your loan
- Need to instruct that attorney to either close and bill the file to the previous person that opened that file for foreclosure
- Make a business decision; do you pick up off where they left off or do you just let it go
24:27 – What to do before your “Hello” Letters go out
- Need to verify that the “Good Bye” Letter is correct
- Request digital copies of all the “Good Bye” Letters
- After Hello letter has gone out
- Post 10 day introduction letter
- Introducing who you are
- Giving your willingness to help
- Giving them some options
- Post 10 day introduction letter
26:17 – Optional Step: Pulling a title report
- Looking for lien position
- Looking for judgements
- Looking for any investments that may have been put on the property
- Verify delinquent taxes on the title swipe
Min 26:55 – Investing in a Title abstract or an Ownership Encumbrance Report
Min 30:09 – What to do after verifying your mortgage position
- Also verify taxes (Need to protect your position)
- Verify what the status of the first is (you’ll go back to the credit report for this)
Min 31:21 – What to do if you don’t have the first mortgage on the credit report?
- Create a type borrower information packet (engagement strategy)
- Here’s what to include in your package:
- Borrower Authorization
- Who is your first lien holder?
- Are you current? Yes/No
- If no, how delinquent are you?
- Have you applied for a type of government assistance
- Have you considered a short sale by listing your property
- Percentage of uptake
- More success with 2nd lien holders
- How to get a better response
- Connect better
- Personalizing your approach
Min 36:07 – Breach Letters and communicating exact arrearage amounts to borrowers
- Lender has a right to contact the borrower
- Calculating the delinquent amount
- Facting total amount past due
- *Reminder – your attorney will not factor a breakdown of your arrearages
38:50 – What to do with borrowers that object to the total principal and arrearage amounts
- Here is what you tell them
- “When do you think you stopped paying on the loan?”
- Follow up strategy
- Print out and highlight the amortization schedule
- Helps the borrower understand what they owe
- Follow up strategy
Min 43:06 – Benefits of knowing the value of your property
- Helps with the strategy of approaching your borrowers
- Will help avoid a borrower BK
- Will help you know how to approach your borrower
43:48 – Tools for determining the value of your property
- Online Tools
- Contact realtor directly
- “I’m a consumer looking to buy in the area and I ran across this property and I wanted to know what the value is because I might want to bid on it at foreclosure sale”
46:55 – Open Q&A
- How to go about finding a seasoned realtor? Other than REO Broker.
- Calling title companies
- I’m using Chicago Title. Is there any other resources I can use?
- Orion Financial Services
- Real Quest (Division of Core Logic)
- I haven’t been able to access Core Logic. Do you have a recommendation for gaining access
- What to do for borrowers are deceased?
- Deceased Prior
- Deceased After
- What if the borrower has been deceased for a while?
- How to calculate the arrearages with an equity line of credit?
- Equity lines of credit
- Delinquency clause
- One of the files I received is missing the assignment of mortgage.
- Contact the seller – break in the change of assignment
- Check if the first is performing or no
- Equity in the property?
- Evaluate if it is worth keeping that particular asset
- What to do when you arrive at the payoff period?
102:09 – Call Recap / Final Announcements