THE NON-PERFORMING JUNIOR LIEN PART II GORDON MOSS
National door knocking services can be hired for a very nominal $60 charge for a three visit plan where the
service will deliver a written message, talk with the borrower, and even hand them a cell phone with you on the
line to discuss moving forward and resolving the issue. Additionally, they can report back on the condition of the
property. If, for example, the property is vacant, they will talk with the neighbors who are often very helpful.
The Wake Up
The Borrower Wake Up is the first step in our process of getting these loans moving forward. In our experience
with California state regulations (these regulations vary by state) the existing State Bill 1137 requires the
borrower be contacted on three different occasions before a formal notice of default can be filed. As a result we
have developed what we refer to as “the shock and awe package”. It is a Fed Ex box that is delivered three
times and contains a very professional and legal looking binder with a professional cover letter, demand for
payment, copy of the Note, and copy of the Deed of Trust.
The Workout
Once contact is made we ask them “What happened? What’s happening now?, and what would you like to do to
move this forward?“. You need to focus on your listening skills here and build a rapport with the borrower.
Empathize with their current situation and assure them that if they will work with you, this problem can be
resolved and will benefit all.