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Updated over 10 years ago on . Most recent reply
How to get borrower to refi?
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!
Most Popular Reply

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.