For many lenders and other holders of distressed debt there can be significant amounts of money “left on the table” following foreclosure and disposition of REO.
Many institutions are neither inclined nor equipped to effectively pursue the deficiency, and even though internal policy often dictates that a judgment be secured; this mandate is unproductive without an effective post-judgment recovery plan.
The CRA Recovery Team employs skilled, highly educated and experienced professionals from multiple disciplines to ensure the maximum recovery on each loan assigned to us. Our due diligence department determines what led to the default (and if applicable, the judgment), and confirms all amounts currently due on the debt. Our research department conducts exhaustive research to enable us to fully understand the current financial ability of the obligors to satisfy the debt. Armed with this comprehensive data, our asset management department then contacts the obligors and commences the settlement scenario dictated by the circumstances and obligor cooperation level.
Because of our deep experience in this unique niche, we can ramp up efforts immediately, irrespective of the current status and loan condition. This ability, and flexibility, makes it easy for our clients to place new debt with us.
The mitigation of an institution’s financial exposure and risk from the recovery process is an immediate, tangible benefit.
CRA’s proprietary data management system enables clients to login to a secure database to view the current status of their files and generate customized reports at any time. Regular distribution reports are sent by CRA to each client, along with the client’s share of all settlement proceeds.
Because of our 23 year FDIC partnership and the fact that many of our private lender clients are acquiring institutions, we have experience in working directly with the loans covered by the loss-share agreements.