A simple way for banks and lenders to save money.... Work with distressed borrowers and do a workout

[Jack Miller]

I have a simple and easy way for banks and the FDIC to save money, and its very easy. All they need to do is work with struggling borrowers, instead of unleashing lawyers on them, help them. I see and work with this almost every day commercial investors who's banks are choking them, instead of helping them. In the end its never good to go to war, and always better to work with one another... I have so many stories how the attorneys milk the cases and in the end its bad.. Usually for the bank.

Banks are putting people info default for technical reasons on paying borrowers every day of the week.. I just started to work for a new client this week, and instead of the bank working with the borrower i think they will wind up with a 4 million write down... For no reason, only the lender and lawyers do not think or care.... In the end my client will save millions..I am glad they came to me...

Jack

[Jack Miller]

JW, I have been in the lending, real estate and banking business for a long time now. My entire adult life, and have the last few years spend more and more time doing workouts and turnarounds and boy can I tell some stories about banks doing the stupidest things as well sadly they could not care less about the borrower.  It is very sad how they have destroyed some peoples lives, I am working a deal now on behalf of the owners there the bank out an 11 Million loan in default when the payments all were made on time. In the end the bank will loose big time. Another I worked on was a property was a retail shopping center with a cash flow, but the ownership was unable to refinance. The current loan had matured and the lender wanted it paid off, first they raised the interest rate, then they put it in default. The outcome was they gave the ownership a 24 month deal with a 20 year amortization. No fees or costs and dropped the rate by 300 bp to 5.5%, It worked out to a $74,000.00 annual savings to the owners…… Not a bad day

I have a very unique back ground and experience level and try to put this to use to help owners of real estate.

Let me know if I can help in anyway

[JW Najarian]

I just sat in on a lunch of real estate professionals in Glendale and the number one thing discussed is how the industry has changed from one of getting the job done and then saying next, is how much, every part of the industry from lenders to escrow, title and brokers now have to educate and build relationship and community. This is another part of building great community by working with distressed borrowers as opposed to unleashing the lawyers on them.

Great job Jack. I would like to hear more about successful workout stories.

JW Najarian

CREPIG Founder