If getting a borrower to work with you to resolve a delinquent loan was easy, it’s safe to say that we at Total Lender Solutions would need to look for a new line of work. The foreclosure process itself is complicated and can take months. Working with borrowers to find a mutually beneficial solution is also difficult, and there are some cases when it’s impossible. Let’s talk about what to do when borrowers refuse to work with lenders.
Make the Effort Anyway
Lenders should always exhaust every effort to work with borrowers before moving forward with a foreclosure. There are, of course, aspects of a foreclosure that the borrower must consider before initiating the process. At TLS, we strive to educate our clients that even nonjudicial foreclosures have procedures and safeguards in place to ensure that the borrower is treated fairly. And of course, foreclosures themselves are lengthy and can be costly. It’s worth the extra time and effort to try to establish a line of communication with the borrower, and encourage them to be open and honest about their reasons for not keeping up with their payments. While state and federal laws require that certain communications and notifications be issued to the borrower, it may be wise to go above and beyond those requirements, using any channels (mail, email, phone calls) that are available.
Make Sure That All Guidelines and Regulations are Strictly Followed
If after repeated efforts to work with the borrower have failed, it will be necessary to initiate foreclosure proceedings. It’s absolutely crucial that all rules and regulations are followed to the letter. This is especially important as the country continues to grapple with the effects of the COVID-19 pandemic; foreclosure guidelines continue to change and evolve along with the situation. Failure to follow a state’s foreclosure procedures can result in delays and possibly fines or other actions against the lender. Lenders who strictly adhere to these guidelines, while still treating the borrower in a respectful and professional manner, will find that the process will go much smoother.
Partner With A Foreclosure Processing Specialist
Because the process is so complex, and changes have been occurring on a rapid basis over the past 18 months, it’s crucial to work with a team that specializes in foreclosures. A seasoned foreclosure specialist will bring current knowledge to the process, and will possess a deep understanding of how a foreclosure plays out. Executing a foreclosure involves much more than just knowing what forms to file, and when and where to file them. In order to bring the process to a successful conclusion, the borrower needs to have a thorough understanding of federal and state laws that surround foreclosure.
At Total Lender Solutions, we advocate for lenders looking to maximize recoveries on defaulted loans. For over 15 years, our team of highly experienced real estate professionals and legal experts has transformed complicated processes into clear resolutions for institutional and private lenders. We work as a vigorous extension of your team to provide comprehensive solutions and seamless communication, from pre-foreclosure and notice of default to the final sale phase. Our dedication and persistence when it comes to the foreclosure process ensures that our clients feel confident in reaching a successful outcome. Contact us today.
