RC_LA_DA_302.2 Processing the Bankruptcy Loan
Bankruptcy cases generally last between three months and five years. Accurate and timely management of bankruptcy cases during this time is critical to the mortgage servicer. Missed filing dates or incorrect reporting can result in lost time and revenue on an account undergoing a bankruptcy. The servicer needs to know the status of the bankruptcy case and any options available to increase its chances to collect from the debtor. To protect the creditor's interests, the servicer needs to be organized in its collections and reporting processes throughout the bankruptcy.
In Processing the Bankruptcy Loan, participants are introduced to the processes that must be managed during the bankruptcy case. The course begins with the initial steps that must be taken by the servicer upon notification of the bankruptcy. Then it discusses the proof of claim and its benefits to the servicer. Management of the different types of bankruptcy payments and the reports that must be maintained and filed by the servicer are addressed. The course also examines the relief from stay and the consent order and the impact of these documents on the collections process and on the mortgage servicer.
This is a single-family/residential course.
Seat time approximately 1 hour.