No One Likes Being Ignored, Especially Bankers!

Of the dozens of client workouts I handle per year, the same theme seems to repeat itself.  Borrowers who run, hide, duck and avoid talking with their creditors.  Yes, when you have a secured bank creditor, vendors, leasing companies, credit cards that you are all in default with, it can be rather difficult to constantly communicate with all of them.  But, you really need to do your best.

I have many relationships with bankers across the country that I have worked with multiple times.  I have visited with them, sat down and discussed what they are looking for in a workout and really been able to pick their brain in how they best handle a defaulted borrower.  The biggest key to successfully getting through a workout is perhaps the simplest principle.  Communicate openly.  Too many borrowers avoid phone calls, they hide assets, don’t return phone calls, lie and much worse.  There is nothing that irritates a banker more than this type of behavior.  Especially today when each banker or workout officer has a huge stack of files they are trying to service, why should they be patient with you if you treat them in this manner?  It is too easy for them to just sue you, obtain a judgement and let the lawyers chase you for the next twenty years.  If your banker calls, return the phone call even if it is just to say “nothing has changed, I have no additional updates or information.  Can you give me another week to get back with you.”  Then in a week, you better call them as promised.

Think of it this way, if you can’t fullfil a promise of returning a phone call, how can you have enough credibility that you will be able to perform in a workout or short payoff?  Stay in close communication with your banker for success in a workout.