Default Debt Sale Process

These are additional processes that you can add to your LMS tenant to help streamline your loan servicing. You can either set them up yourself using process wizards, or reach out to your success specialist to enlist the help of our support engineers (tech support rates may apply).

Introduction

A major function of LoanPro's Loan Management System is to make common company processes as streamlined and effective as possible. This is no different when it comes to the default debt sale process, which is typically requires a complicated set of actions for any company. Our process wizards make processes easier for your team and improve the chances they are completed successfully. This article will cover the debt sale process and how LoanPro simplifies it greatly for you and your team.

Default Debt Sale Process

A lender may decide to sell the debt of a loan to someone else. Some lenders specialize in rehabilitating and selling loans; some may need an immediate infusion of cash; and some may decide to sell loan debt when the loan is no longer performing. The Default Debt Sale Process simplifies selling and/or repurchasing loan accounts. The flow chart below outlines all the changes and processes implemented by LoanPro directed by the agent user's inputs in the wizard. The agent user's role is outlined in this article.

Debt Sale Process Wizard

In the event that a loan account is being sold or repurchased, locate it in LoanPro and navigate to the Wizards tab. Select the 'Category' drop-down and click 'Others'.

To start the Debt Sale/Repurchase Process, the loan must be in the 'Application', 'Open', or 'Closed' status. Click OPEN and START to begin the Wizard. 

On this page select the appropriate 'Debt Sale Status'. If 'Approved for Sale' is selected, also select the associated 'Debt Buyer'. Click SAVE and NEXT to continue. 

Choose an appropriate 'Action & Result' and document any additional information in a note. Save the information and click NEXT to complete the process. 


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