How to get borrower to refi?

How to get borrower to refi?

Huntington Beach, CA · Member since 2014 · 137 posts · 33 votes

HI Note Investors,

I currently hold a reperforming note where the borrower has a very impressive track record of 24 months of payments since her loan mod.  I would like to help get her refi'd so 1) she will save money and 2) I can exit this investment with a significant profit.

What steps should I take to get her to refi? Should I write a letter to her explaining  she can be saving hundreds of dollars each month in interest if she refi's?  What strategies have you employed?

Thank you!

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Investor · Adkins, TX · Member since 2012 · 193 posts · 93 votes
11y

Send her a letter with a new dollar bill and ask her if she would like to get more of them. You will get a phone call for sure. Now ask yourself what is in it for her? Have an incentive? I offered a small discount in that I told the borrow I would pay $1,500 on their car note. They jumped at the chance.Remember if they can not see an advantage for themselves they will not be motivated to action.

Also have a soft credit report pulled so you know if their credit score is such as they can get a loan at a  interest rate no more than what they are paying you. If you are not using a service company to collect the monthly payments then her payment history will not be reported to the bureaus which would boost her credit score.

By pulling a soft credit report you will know what bills she has. The you can say "Mary suppose I would pay $xxxx on your car or furniture note?"

If for some reason she says no, then every 90 days send the dollar bill. It will eventually work.

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  • Queen Creek, AZ · Member since 2014 · 2k+ posts · 1k+ votes
    12y

    Look into a 1023B refi.  It might work for your situation.

  • Investor · Adkins, TX · Member since 2012 · 193 posts · 93 votes
    11y

    Send her a letter with a new dollar bill and ask her if she would like to get more of them. You will get a phone call for sure. Now ask yourself what is in it for her? Have an incentive? I offered a small discount in that I told the borrow I would pay $1,500 on their car note. They jumped at the chance.Remember if they can not see an advantage for themselves they will not be motivated to action.

    Also have a soft credit report pulled so you know if their credit score is such as they can get a loan at a  interest rate no more than what they are paying you. If you are not using a service company to collect the monthly payments then her payment history will not be reported to the bureaus which would boost her credit score.

    By pulling a soft credit report you will know what bills she has. The you can say "Mary suppose I would pay $xxxx on your car or furniture note?"

    If for some reason she says no, then every 90 days send the dollar bill. It will eventually work.

  • Huntington Beach, CA · Member since 2014 · 137 posts · 33 votes
    11y

    Boyd, you are the man! I will try that

  • Huntington Beach, CA · Member since 2014 · 137 posts · 33 votes
    11y

    While I was writing the letter to the borrower, I listed the note on fciexchange and got a nice chunk of change for it.  Thanks, Guys!

  • Investor / Rehabber · Fort smith, AR · Member since 2014 · 178 posts · 30 votes
    11y

    I have a great mortgage broker that I set them up with and tell them how much money they can save and they usually call him and refi. 

    Now sometimes I have to give the mortgage broker their info and this speeds up the process. I dont use BANKS! I let the broker figure out how to get them their loan.

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