RC_LA_DA_302.2 Processing the Bankruptcy Loan

Bankruptcy cases can span anywhere from three months to five years, and during this period, mortgage servicers play a critical role in managing accounts affected by bankruptcy filings. Timely and accurate handling of bankruptcy-related tasks is essential to protect the creditor’s interests and minimize financial losses. Missed deadlines, incomplete filings, or inaccurate reporting can result in lost revenue and hinder recovery efforts. Servicers must remain informed about the status of each bankruptcy case and understand the available legal options to enhance their chances of collecting from the debtor.

Processing the Bankruptcy Loan is designed to equip participants with the knowledge and skills required to effectively manage loans throughout the bankruptcy process. The course begins by outlining the initial actions a servicer must take upon receiving notice of a bankruptcy filing. It then explores the importance of filing a proof of claim and how it benefits the servicer. Participants will learn how to manage various types of bankruptcy payments and maintain the necessary documentation required by the court.

Additionally, the course covers how to seek relief from the automatic stay, including the potential use of consent orders. These actions can significantly impact the collections process and ongoing servicing activities. By the end of the course, participants will understand how to navigate the complexities of bankruptcy servicing with precision and compliance.

 

This is a single-family/residential course.

Topics:

• Notice of Bankruptcy Filing and Initial Servicer Actions
• Proof of Claim
• Bankruptcy Monitoring and Maintenance
• Relief from Stay
• Consent Orders

Seat time approximately 1 hour.

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