Over the past four years a lot of people walked away from their under valued houses. The majority of them expected the bank to take the hit. They show up asking for credit and telling prospective Creditors that the foreclosure will not impact their ability to pay. Many of them will be surprised when they receive a summons for the entire amount of the Bank loss. If you are a current Creditor, the problem immediately becomes yours.
In 41 States Banks and other lenders may go after the Mortgage signers for their losses. This action will instantly turn most reasonable credit risks into migraine headaches.
Many of these people will be forced into bankruptcy. Others will simply accept bad credit as a way of life. Part of that strategy is to leave you in the lurch. You will, of course, be able to sue them, but there won't be any money left. You will wind up with a nice piece of paper that says you win.
A substantial portion of the claims received by the debt collection industry are from the fallout of short sales. We cannot collect money that doesn't exist. Neither can you.
Be careful. Short Sales are a ticking credit time bomb guaranteed to become a debt collection nightmare.
Understanding debt collection and background screening best practices can save your business big money. Building up front applicant screening into your business processes costs you very little, but saves you so much in the end. If you haven't already, partner with a full service debt collection and applicant screening company to guide your business to a place of security and prosperity.
ABOUT EXECUTIVE CREDIT MANAGEMENT, INC.
Executive Credit Management is a full-service Debt Collection and Applicant Screening agency with over 20 years experience located in Central New Jersey. We provide excellent service in the following areas: Employment Screening, Business Screening, and Tenant Screening. Executive Credit Management belongs to a number of Skip Tracing databases and offers services to help locate and confirm the current address of missing debtors. Other services provided are: litigation evaluation on all lawsuit decisions, improvement of the quality of the applicant data, Lawsuit Monitoring, Handling of Debtor Disputes. Executive Credit Management features the best Call Monitoring System in the Debt Collection industry.