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68 I N D U S T R Y I N S I G H T / K E L L Y C O N L E Y e teams that oversee the various aspects of pre- and post-fore- closure sale claim production strive toward a single ultimate end goal—to maximize the retrieval of all eligible claim proceeds. ey coordinate to secure qualified principal balance deficien- cies and default-related servicer advances while maintaining adherence with investor/insurer guidelines. e layered and complex task of claims management relies on continuous oversight, tight production monitoring across numerous functional areas, and reliable quality-assurance measurements. Cross-functional coordination and continuous efficiency are critical to the suc- cess for this last line of defense. NAVIGATING THE FIELD:IT TAKES A TEAM Claims management requires more than just one star player. It does not fall under the scope of one particular position or team. Instead, the expansive activities that directly impact the claims environment generally include property maintenance and preservation, vendor man- agement, eviction, claim preparation, quality assurance, loss analysis, inventory pipeline monitoring, exposure projecting, and corporate advance reconciliation, which includes all post- default recoverable and non-recoverable servicer advances. In order to maximize returns, servicers are charged with successfully navigating dozens of discrete claims-related activities and processes across numerous teams. Failing to do so can lead to diminished qualified claims proceeds and an increased potential for claim-filing inaccuracies. e ultimate payment of reimbursable investor/ insurer claims truly does represent the last line of defense from a financial perspective, so it is imperative that the mechanics of milestone activity oversight, intermittent activity coordi- nation, and inventory pipeline monitoring are tightly managed. Once the claims process runs its course, loans are liquidated and resultant losses or gains are booked. FOCUSING ON THE GOAL e migration of the loan cycle, from the time of initial default through the final claim- filing stage, can span several months or even years. Even when there are no upstream delays or intervening circumstances, corporate servicer advances—in connection with various attorney/ legal services, routine property inspections, and property securing and maintenance—are inher- ently part of the claims world even if the under- lying activities occur outside of the typical realm of claims. If 'advance ownership' falls outside of claims, line-item allowable-claim thresholds, which vary depending on the investor or insurer, should be accurately captured at the time of ser- vice to ensure the team can reliably estimate up- stream line-item advance recoverability through the downstream claims process. e continuous monitoring of line-item allowable-claim thresh- old rules, reconciliation of per-advance invoices, and the timely recording of trends in areas of monitoring opportunities will result in reliable financial-position estimates long before ultimate Claims management serves as the last line of defense before ultimate loan losses or gains are realized in connection with distressed assets. Thus, perfecting a claims-management strategy is critical to minimizing losses and maximizing gains.