Financial Asset Services, Inc., Irvine, Calif., a national asset management company, has launched a new Door Knock service designed to help mortgage servicers in their loss mitigation efforts.
"Utilizing door knocks is a cost effective way for mortgage servicers to reach out to homeowners that may have 'gone dark' in the default process," said Jeffrey Flory, who runs the Sales and Marketing team at FAS.
"We leverage our nationwide network of REO and short sale agents, so if they are fortunate enough to make contact and the homeowner is willing to talk, they can have a constructive discussion of some of the options that may be available to them."
The agents are given strict instructions as to their specific behaviors while executing the door knock service in order to remain compliant with the Fair Debt Collection Practices Act (FDCPA).
For the servicer, successful door knocks can open up new discussions of Short Sale transactions or deed-in-lieu negotiations, both of which can benefit both the homeowner and the servicer. From the servicer's perspective, the loss severity will likely be much lower by leveraging short sales or deeds-in-lieu, FAS said.
