Tips on calling new borrower's NPN, intro, workouts, phone script

4 Replies

I recently bought my first NPN, of which is only behind two months and back taxes. I'd like to get involved by calling the borrower to introduce myself and get a feel for their intentions before taking legal action. I have outlined a script below to make sure I get all the info I need, offer all possible options, and don't break any rules.

Does this sound like a good approach? Can you comment on what I have so far? Anything I should change or leave out? Any other possible workout scenarios I am missing?

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Intro
When phone picks up, ask for Mr or Mrs X. If they ask why, I have a private matter relating to their property at X location.
When borrower is on the phone, introduce myself that I work for the company that now owns their mortgage and make sure they understand and got the intro letters sent by my servicer.
Ask how things are going for them (in general / weather / life / work, etc), let them talk, try to build rapport by chatting about similar interests, keeping it professional.

Collect Info
Ask what they plan to do about unpaid taxes from last year that are going to tax sale very soon.
Ask if have plans to get current with the mortgage.
If they indicate they are in hard times and not sure how they can pay, ask if I can help them by better understanding their situation, since I’m a bit of a 'financial planner’.
Ask who currently occupies the property (since they live in a nearby city). If it’s a rental ask how much they gross.
Ask what they do for a living, how much they make, what their expenses are.
If possible collect info on their other assets such as retirement accounts, cars, boats, etc.
Calculate how much they can afford to pay per month.

Propose workouts
1) If the numbers look close, ask how they would feel about possible repayment scenarios that may fit their budget.
2) A forbearance or loan mod is probably not an option for me, but look into it anyway.
3) If we can not find common ground, ask how they would feel about a deed in lieu of foreclosure. Explain that this will not affect their credit in a negative way. Explain how it's similar to a short sale, and may get some cash back for their equity.
4) If they again refuse ask if they have any other ideas since I have exhausted all of mine. Explain that non-action will force the property into foreclosure. Ask if they know what foreclosure will do with their credit. Explain how bad it will be if they are not clear.

Josh, I would take a short course on working with borrowers before you make your first call. There are specific regulations from CFPB that you should follow, including reading the mini miranda disclosure on every call. Feel free to PM me and I'll send you some info. 

Bob