Secured Bank Loan Workouts Ridiculousness… Take Note, Do Not Listen To Your Banker.

I am not certain who is more ridiculous, the banker or the borrower in default. The banker for acting the way so many do, purposely misleading the borrower and giving them misinformation, attempting to squeeze out one last dollar before they liquidate your assets, or the defaulted borrower, for believing it and acting accordingly, as if the bankers are appropriate advisers to the borrower and offering good advice.

I have heard every imaginable untrue statement made by bankers, all for the purpose of intimidating or misleading the defaulting borrower into acting contrary to their best interest, in other words, paying when he should not be paying. It is a cat-and-mouse game, but the “cat” (in this case, the banker) has an unfair advantage as he knows he is misleading the “mouse” (defaulted borrower), convincing him to act against his best interests. The borrower believes the banker and mistakenly, albeit naturally, trusts him, listens to him, follows his lead and believes what he says as being the truth and good advice worthy of following.

There is a simple lesson to be learned here. When in default to your bank, especially on a traditional secured note, do not take advice and council from the bank or their appointed or recommended “expert”. This is very difficult for a borrower to do and typically requires an expert consultant to decipher what the real truth is. Get your own adviser and follow his direction; he is a master at deciphering what you should really be doing, and it is never what the bank says. The bottom line is this: Do not listen to your banker when you are in default. They are intending to mislead you because it works. You must be more aware and knowledgeable and understand what is happening. Reject everything being said and do what is in your own best interest.

I have heard and seen way too many examples of borrowers making this mistake. Pay attention, listen to me and follow these simple instructions: when in default, get help from an experienced professional, a workout specialist who knows the game will help you navigate through the challenge. Not just a lawyer, as that opens a host of other issues, but an experienced workout specialist is what you want.

Call us if you need help at 413-584-2481. Norm will arrange a no-obligation teleconference for us to evaluate your situation and devise an appropriate strategy.