Loss Mitigation Services
Engaging a borrower is critical to successful loss mitigation. Unfortunately, traditional approaches historically generate small response rates and disappointing results.
REsource developed an approach designed to maximize borrower contact and
improve communication. As a 3rd party, we provide contact management, workout analysis, re-originations, loan and
note modifications, and 3rd party refinancing alternatives to increase
recovery and reduce loss on your loan portfolio. REsource will also oversee the drafting and delivery of
such other loan solutions as deed in lieus, foreclosure, forbearance
agreements, and repayment plans. And for those borrowers where no
alternative is available, we offer alternatives to avoid foreclosure
including non-performing note sales, short sales, and pre-foreclosure
property auctions. Available services include:
Borrower Contact
Loan boarding for loading and reviewing all file data for minimum data requirements. Mailing FDCPA introduction letter and any marketing letters.
Borrower contact letter and phone campaigns to reach borrowers and present options available to them per the servicer. i.e. workout or note modifications.
Skip tracing where contact phone numbers are disconnected and skip tracing work must be done to establish contact with borrower. REsource employs over a dozen separate skip tracing search routines.
Financial questionnaire completed by borrower or workout specialist during contact that updates borrower information and credit information.
Door knock where traditional contact methods prove unsuccessful and a site visit is made in attempt to reach the borrower and/or determine the occupancy of the property.
Reinstatement, Forbearance, & Deed in Lieu
Reinstatement borrower makes acceptable back payment(s) and becomes current. (i.e. the borrower is behind $3500 and sends in $3500 and agrees to resume making regular payments).
Repayment/forbearance plan borrower begins making regular payments and agrees to either increasing monthly payments to bring the deficiency current or adding the deficiency balancing onto the back of the loan.
Deed in Lieu (keys for cash) coordination of signing deed in lieu document, gaining possession of property, transfer of file to client REO department.
Workout Analysis
Resolution specialist workout analysis aka Loan officer assisted workout analysis, where there is a debt ratio analysis, 3rd party refinance analysis, LTV, and credit review. Due to changes in interest rate, payment, start period, loan amount, and/or term, this is functionally a refinance and REsource has a licensed loan officer negotiate with the borrower. Truth in Lending (TIL) and Good Faith Estimate (GFE) on new loan terms are also available if directed by the client.
Workout documentation and support documenting that the borrower can afford the new payment plan. Will document updated application, income documents, credit report review & debt ratio worksheet, hardship letter, appraisal order & review, inclusion of TIL and GFE on new loan terms available if desired by the client, and more. Useful for future audits, client disputes, and compliance review.
Note Mod
Standard note modification legal note modification is created to document the repayment or forbearance plan. This work includes describing and coordinating the plan where REsource will work with the servicer, investor, or legal firm to obtain the documents and assist in coordinating their signing. Fulfillment of the note mod document preparation can be completed by REsource as needed.
Heavy note modification legal note modification created to document the full workout plan where the rate, payment, interest, loan amount, and term may have changed. Includes TIL and other disclosures that may be agreed upon. This work includes describing and coordinating the plan where REsource will work with the servicer, investor, or legal firm to get the documents and assist in coordinating their signing. Fulfillment of the note mod doc prep can be handled by REsource as needed.
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