Case Study: Borrower Outreach and Workout Strategy
Client: Local Community Bank
Debt collection isn’t fun for anyone, whether you are the one in debt or the one trying to collect it. Our client couldn’t reach the delinquent borrower, let alone collect the money owed to them.
ParkVue Realty put feet-on-the-street and literally went out to the property and knocked on the neighbors’ doors. Eventually, one of the neighbors was able to provide us with the name of one of the borrower’s relatives. But the sleuthing didn’t stop there. We searched public records and found a current address for the relative and knocked on their door. As luck would have it, they were able to provide us with contact information for the borrower.
While we could have simply handed over the current contact information to our client, we went a step further and contacted the borrower directly and let them know that the lender was willing to work through their delinquency. We encouraged the borrower to work with the lender rather than walking away. We connected the two parties and the lender worked out a deal with the borrower that allowed them to avoid foreclosure. Instead, the borrower was able to work out a deal that allowed them to exit the loan via short sale. We finalized the process by listing the property and selling it. In the end, it was a Win/Win: The borrower avoided foreclosure and the bank ended up with a minimal loss of principle and no foreclosure costs.