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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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PropertyAccess Offers Investors REO-to-Rental Solution
6 Feb 2012 at 6:34pm
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Advantages to Lenders
THE PROBLEM:
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File is non-performing with unproductive communication with guarantor. |
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You may be in junior position with senior lender preparing to foreclose. |
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You have limited time constraints and budget to actively resolve the impasse. |
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After numerous phone discussions with guarantor, still no progress is made. |
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Loan documentation may be incomplete, incorrect, or misplaced. |
THE CONSEQUENCES:
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Litigation will often exceed time and financial budget expectations. |
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Receivership adds cost and potential negative impact on lender liabilities |
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If a foreclosure concludes, junior lien holders may be underwater with virtually no recovery from sale. |
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Guarantor insolvency leaves few lender recourse options. |
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Broken assets are magnets for expense and liability. |
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Asset deterioration increases as time passes, further preventing adequate recover at sale. |
| THE ASG SOLUTION: |
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We bring the guarantor to the negotiating table. |
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We create options where none where thought to exist. |
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We mediate all the debt load, produce surety compromises, and work with the opposing legal council. |
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We buy notes, we buy assets, and we produce results TODAY! |
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| THE ADVANTAGES OF THIRD PARTY DEFAULT ASSISTANCE |
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LOCATES….. |
missing or unresponsive guarantors |
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BRIDGES….. |
surety communication barriers |
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ESCAPES….. |
costly and time consuming litigation |
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PROVIDES….. |
complete compromise packages |
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RESOLVES….. |
the un-resolvable |
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COMPLETES….. |
a sale of the asset |
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SAVES….. |
on staff and resources |
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OPTIMIZES….. |
recovery time |
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PRESERVES….. |
other recovery options if they are needed |
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