Mortgage servicers are growing more and more creative in outreach methods
and door-knocking services in an attempt to enter distressed borrowers into
workout plans, according to speakers at the sixth annual Texas Mortgage
Bankers Association (TMBA) Southern States Servicing Conference.Rick Roniger, executive vice president and chief operating officer at
Westlake, Texas-based First American Loss Mitigation, said servicers used to
mail outreach packages with return envelopes included. But when that method
failed, servicers turned to increasingly creative rewards-based outreach
programs.These "gimmicks" included mailing coffee mugs with single-serving-sized
packages of coffee grounds to borrowers with notes encouraging them to "sit
back, relax" and fill out the information about their late mortgage
payments, Roniger said.Soon, servicers sent out field units to engage in a door-hanger service to
encourage borrowers to contact their mortgage companies if they had trouble
paying. Door-hanging services soon became door-knocking services, which
ultimately produced occasions of field agents knocking on borrowers' doors
and physically handing them a phone to call their servicers."If we can talk to people, we can usually reach a workout deal," said Brad
Staley, managing director at Irving-based iServe Servicing, who also spoke
at the TMBA conference.He noted the main challenge in resolving extremely distressed, low-value
assets is making contact with the borrowers and maintaining that contact
once a workout plan is initiated. Some field services go so far as to knock
on borrowers' doors after normal business hours and on weekend mornings, as
well as stake out in cars in front of houses for up to an hour or until the
borrowers return home.If the borrower responds to the outreach efforts, a workout plan can be
reached 85-90% of the time, Staley said.He noted some field services will actually go with borrowers out to a coffee
shop to go through paperwork and discuss workout options. If those same
field agents keep in touch with borrowers once modifications or forbearance
plans are initiated, the level of continuity achieved gives borrowers a
sense of stability and customer service.Staley said these methods achieve a low recidivism rate around 18%.But that's only when the borrowers can be contacted. And in the case of
servicers sending field agents out to knock on borrowers' doors, sometimes
the homes are already abandoned.In the Midwest region, for example, Staley said around 55-60% of homes
visited by door-knocking field agents are already vacant. Some proactive
outreach methods like contacting the listing agent if the property has a for
sale sign, or following through to a forwarding address, may still result in
an avoided foreclosure, he said. For instance, some borrowers respond
positively to pursuing a short sale or deed-in-lieu.Staley said this type of proactive outreach can bring around 30% of
borrowers that have already walked away back into the homes and into workout
plans.Write to Diana Golobay. Promote your business and
services online and offline, find out when our next mixer is.Connect with other successful
womenReal Estate Investing Education,
take advantage of today's real estate marketBuild Your Business-Drive Your Dream Promo
Code: legendwww.TotalSolutionsAlliance.com Connect with me on Facebook
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and door-knocking services in an attempt to enter distressed borrowers into
workout plans, according to speakers at the sixth annual Texas Mortgage
Bankers Association (TMBA) Southern States Servicing Conference.Rick Roniger, executive vice president and chief operating officer at
Westlake, Texas-based First American Loss Mitigation, said servicers used to
mail outreach packages with return envelopes included. But when that method
failed, servicers turned to increasingly creative rewards-based outreach
programs.These "gimmicks" included mailing coffee mugs with single-serving-sized
packages of coffee grounds to borrowers with notes encouraging them to "sit
back, relax" and fill out the information about their late mortgage
payments, Roniger said.Soon, servicers sent out field units to engage in a door-hanger service to
encourage borrowers to contact their mortgage companies if they had trouble
paying. Door-hanging services soon became door-knocking services, which
ultimately produced occasions of field agents knocking on borrowers' doors
and physically handing them a phone to call their servicers."If we can talk to people, we can usually reach a workout deal," said Brad
Staley, managing director at Irving-based iServe Servicing, who also spoke
at the TMBA conference.He noted the main challenge in resolving extremely distressed, low-value
assets is making contact with the borrowers and maintaining that contact
once a workout plan is initiated. Some field services go so far as to knock
on borrowers' doors after normal business hours and on weekend mornings, as
well as stake out in cars in front of houses for up to an hour or until the
borrowers return home.If the borrower responds to the outreach efforts, a workout plan can be
reached 85-90% of the time, Staley said.He noted some field services will actually go with borrowers out to a coffee
shop to go through paperwork and discuss workout options. If those same
field agents keep in touch with borrowers once modifications or forbearance
plans are initiated, the level of continuity achieved gives borrowers a
sense of stability and customer service.Staley said these methods achieve a low recidivism rate around 18%.But that's only when the borrowers can be contacted. And in the case of
servicers sending field agents out to knock on borrowers' doors, sometimes
the homes are already abandoned.In the Midwest region, for example, Staley said around 55-60% of homes
visited by door-knocking field agents are already vacant. Some proactive
outreach methods like contacting the listing agent if the property has a for
sale sign, or following through to a forwarding address, may still result in
an avoided foreclosure, he said. For instance, some borrowers respond
positively to pursuing a short sale or deed-in-lieu.Staley said this type of proactive outreach can bring around 30% of
borrowers that have already walked away back into the homes and into workout
plans.Write to Diana Golobay. Promote your business and
services online and offline, find out when our next mixer is.Connect with other successful
womenReal Estate Investing Education,
take advantage of today's real estate marketBuild Your Business-Drive Your Dream Promo
Code: legendwww.TotalSolutionsAlliance.com Connect with me on Facebook
Twitter LinkedIn
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