Debt Resolve Eyes Home Loan Modification Space
Debt Resolve, which provides consumer debt resolution as well as collections and skip tracing services, has entered into an agreement with a California firm to provide a product for the subprime home mortgage workout/note modification market.
Under the $4.5 million joint venture with The Resolution Group, debt resolve will provide its subprime collection tool, in combination with TRG's mortgage servicing system, to allow homeowners to select options presented to them by the financial institution with the ability to download state-specific loan modification and extension documents to cure a default and prevent foreclosure. TRG will also provide sales, marketing and administrative staff and supervision from a center to be located at facilities in Las Vegas and Irvine, Calif.
TRG specializes in providing consulting, market strategy and planning to the mortgage industry and health care community primarily based on the West Coast.
James Burchetta, Debt Resolve's co-chairman and CEO, said in a news release that Debt Resolve and TRG are in a unique position to provide solutions to the mortgage industry.
"Our Internet tools are easy-to-use, safe and secure and allow the homeowner the opportunity to reflect upon various options to stop, prevent or cure default. We are excited to enter into a joint venture with TRG whose principals understand the mortgage industry, its current difficulties and the solution," Mr. Burchetta said.
TRG also agreed to introduce Debt Resolve to accounts from its creditor base in the health care, home mortgage and banking industries.
Under the agreement, TRG will make an investment in Debt Resolve through loans to finance the subprime mortgage venture. Debt Resolve will also issue warrants to TRG allowing the company to purchase shares of its common stock at a pre-negotiated price. The extent of the TRG investment in Debt Resolve depends upon the level of funding TRG provides the company.
Debt Resolve is the parent of First Performance Corp., a collection and recovery agency. (c) 2008 Mortgage Servicing News and SourceMedia, Inc. All Rights Reserved. http://www.mortgageservicingnews.com/ http://www.sourcemedia.com/