Why Banks Like To Work With Us Despite Deep Debt Forgiveness

We talk with bankers every day and in many instances, we do many different debt forgiveness workouts with the same bankers, especially in the large banks with whom we constantly engage. We get to create relationships. These bankers tell us their inside view and understanding this is part of what helps us create so much success.

1. We are told by our banker friends that they spend much of their time chasing defaulting borrowers. Borrowers hide out, do not return calls, do not provide important financial information and generally want to do things their way, as opposed to the bank’s way, and this makes life very difficult and unpleasant for the bankers.

We approach the banks with open arms, offering complete disclosure and total cooperation. This works. They appreciate our involvement as we understand the system and cooperate fully with them, providing exactly what is requested and required.

2. Most borrowers and their representatives–lawyers, accountants or financial specialists, or even workout specialists–tend to want to negotiate with the bank, using logic and emotion that simply is not relevant and does not work. Worse yet are the “pounders”, those who bang on the desk and demand consideration of their plan or threaten bankruptcy or other unlikely options. This is common but it definitely does not work. These people are always arguing the wrong way for the wrong results, alienating rather than resolving.

We embrace the bank and include them on our team. We lead the way and reveal our plan and the bank approves in advance as we work together to reach the conclusion, whatever it may be. This works.

Our plans and strategies are designed to satisfy the banks’ requirements while delivering an excellent result for the defaulting borrower. What we have leaned is that the banks are not overly concerned with the effect the workout has on the borrower, good or bad. They are primarily interested in the results for the bank; this is their greatest concern and we understand this. Like any difficult, challenging situation, understanding what works and what does not work and delivering the result that satisfies such guidelines is the only plan that makes sense and the only plan that works.

We get it and the banks get that we get it so we are very successful in resolving defaulted loan workouts that result in significant debt forgiveness.