Negotiating a workout with a bank is now more difficult then ever but for the wrong reason. Because of the glut of non performing loans, foreclosures, and bankruptcies, the workout departments are inundated with far too many clients that need workout attention then they can possibly handle.
It is so backed up with so many banks that sales are being lost because there is no one available to talk with.
This is a serious impediment to working debt issues out now and I am now forced to have council shoot a threatening letter to either the loss mitigation dept, the workout department or the lawyers representing the bank, threatening the bank with damages if they cannot deal with a proposed closing, sale, or whatever in time for the event to occur, prior to the foreclosure.
I have had a Purchase and Sale offer in hand from a qualified buyer yet could not reach a workout officer in time to convince them to postpone the foreclosure while we explore the value of the sale..That’s sad. Actually its the height of inefficiency and verges on negligence and is certainly a potential claim for breach of their fiduciary responsibility, yet it is currently the state of the industry and promises to get worse before it gets better.
There is little I can say about it other then to disclose this issue and recommend an early use of your lawyer for the sole purpose of getting their attention, getting in front of others waiting in line and getting the result you need.
I find I must resort to a threat just to get a workout man on the phone, and the threat must be real with a lawyers letter and follow up calls.
Do not wait patiently for your workout number to come up. Its not a deli, its your life, you must become aggressive and proactive. This is a good use of your attorney. Call him now if you are waiting for a response…it is not on the way. Call for help 413-549-2966.
June 11, 2008 at 7:18 am06
Its an uphill battle on a slipopery slope…but there is a path, I look forward to shining some light on it. Lets talk off line, I will prepare you and if you desire I would be delighted to represent you and take an active roll in leading the way.
Don
413-687-8388
June 10, 2008 at 7:18 pm06
Don:
Great speaking with you on the phone today regarding a workout with an SBA 7a loan. Just read your post on “waiting for workout responses” and figured that would be the case in heading into this. Looking forward to speaking with you more on this topic.
-Andy in PHX
602-793-3755