Many times we encounter a problem in the Note Business. The borrower, the attorney, the homes. What do you do you do when faced with a problem?
Let's try to tackle this one at a time.
The borrower is the biggest variable when purchasing a note. Cooperation or resistance is a huge X Factor in ensuring your workout process goes smooth or goes the distance. The way we deal with it is by understanding the situation of each loan before even making the first contact with the borrower. What is our position on the property? What kind of leverage do we have? Where is the home located? Understanding these factors will change the type of interaction needed to work with the borrower.
The attorney can either be your friend or your enemy when they represent the borrower. The way you deal with them will be the difference. Understand the attorney has a job to do. That job is to resolve this loan. Your end goals are mutual. Now you need to figure out how to get the attorney on board. Being combative is not going to help either party but that might be a strategy for the attorney. Use the information you have to your advantage to work through the process with the attorney.
This is what I get the most questions about. What is the value of the home? It seems simple. Most people will stop after they get a few internet values. After you acquire the loan why stop there? Take the extra step and send a realtor to check out the location, the home condition, the values, etc. Gather as much info as possible so that you predict the track your note will go rather than the other way around.
If you like this format send me some questions to cover for our next monthly newsletter.