Key Takeaways
- Default prevention starts at origination with conservative LTV, verified income, and adequate reserves.
- Five workout strategies: modification, forbearance, repayment plan, deed-in-lieu, and short sale.
- Foreclosure timelines range from 2-6 months (non-judicial) to 6-18 months (judicial) depending on the state.
- Budget 12-18 months and $10K-$30K for a typical foreclosure when pricing lending operations.
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Test Your Knowledge
1.What is operational risk?
2.What is a risk register?
3.What is the Recovery Time Objective (RTO)?