Posted by John Behle on February 23, 2008 at 19:13:46:
In Reply to: Foreclosure posted by Mike Meroney on February 22, 2008 at 11:04:33:
In my case, it is rarely. But, that is because of how we work with people and the creative and win/win approaches we take when someone has a problem with payments.
We rarely foreclose, but we do take back properties. Usually that is buying them out to avoid foreclosure for both of us or just a deed in lieu with no capital. In some cases, it is a case of taking the deed and working out a re-purchase with a buyer that wants to stay and has some capability of getting back on their feet.
When there is a foreclosure, usually it is with people who are chronic liars or pathalogical. We minimize that by being quick and firm with legal proceedings while still trying to negotiate with them. It is usually approached in the manner of it is company policy that they do not or cannot delay actions, but I am there to work with them to find options or solutions.
I was inluenced early on by a roundtable where I heard Jay Turner speak. Jay was an early partner of Peter Fortunato. Jay made the comment that he had never had to foreclose. My first though was "Boy is he lucky", then that was followed with "no, he is just cautious in the paper he buys", and then it was clear as he explained that it is because he works with the people to avoid foreclosure. I always took that attitude and comment of his as the standard to shoot for.