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CDC Takes Advantage of Mediation on Loan Default
Curt Baker
Indiana Statewide Certified Development Corporation Executive Director Jean Wojtowicz recently had surprising results utilizing a little known tool available to all CDC offices to help in liquidation – Third Party Mediation.



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    Association Links
    National Association of Development Companies (NADCO) http://www.nadco.org/
       
    National Association of Government Guaranteed Lenders http://www.naggl.org/AM/
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    The Risk Management Association http://www.rmahq.org/RMA/

    Advantages to Lenders



    THE PROBLEM:

    File is non-performing with unproductive communication with guarantor.
    You may be in junior position with senior lender preparing to foreclose.
    You have limited time constraints and budget to actively resolve the impasse.
    After numerous phone discussions with guarantor, still no progress is made.
    Loan documentation may be incomplete, incorrect, or misplaced.


    THE CONSEQUENCES:

    Litigation will often exceed time and financial budget expectations.
    Receivership adds cost and potential negative impact on lender liabilities
    If a foreclosure concludes, junior lien holders may be underwater with virtually no recovery from sale.
    Guarantor insolvency leaves few lender recourse options.
    Broken assets are magnets for expense and liability.
    Asset deterioration increases as time passes, further preventing adequate recover at sale.


    THE ASG SOLUTION:
    We bring the guarantor to the negotiating table.
    We create options where none where thought to exist.
    We mediate all the debt load, produce surety compromises, and work with the opposing legal council.
    We buy notes, we buy assets, and we produce results TODAY!


    THE ADVANTAGES OF THIRD PARTY DEFAULT ASSISTANCE
    LOCATES….. missing or unresponsive guarantors
    BRIDGES….. surety communication barriers
    ESCAPES….. costly and time consuming litigation
    PROVIDES….. complete compromise packages
    RESOLVES….. the un-resolvable
    COMPLETES….. a sale of the asset
    SAVES….. on staff and resources
    OPTIMIZES….. recovery time
    PRESERVES….. other recovery options if they are needed


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