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In addition, the improved communication with consumers also offers another benefit. "Banks are able to reach the consumer in a positive way and offer them other products, services, and opportunities," Pallotta said. If a bank wants to launch a campaign to get consumers with second liens to combine them with first liens at a better interest rate, it's difficult for the banks to use their resources, so they get LVG to do it. For example, if there are 14,000 homeowners to contact, LVG can get in touch with them via a multiple channel marketing operation that involves email, physical mail, personal phone calls (not automated calls), and targeted marketing campaigns. "These efforts are first approved by the owner of the loan and are focused entirely on building customer trust and confidence," Pallotta said. LVG had a productive 2012, during which time the company initiated eight new campaigns and contacted more than 100,000 borrowers. Its client base includes approximately 24 banks, state authorities, insurers, hedge funds, and mortgage institutions. One of LVG's clients, GMAC Mortgage, offered its own RH Reward program to more than 4,000 military borrowers and their families who obtained a streamlined refinance mortgage loan guaranteed through the Department of Veterans Affairs. "LVG is very pleased to be partnering with GMAC to help those who have served our country," Pallotta said. Connecting with the Evasive When a home is in danger of foreclosure, one of the biggest problems confronting financial institutions is the ability to communicate with homeowners. During growing financial distress, homeowners are more likely to ignore notices and phone calls from lenders. To remedy this, default services provider Green River Capital (GRC) of Salt Lake City created a successful outreach program. 64 "Realizing that a lot of borrowers have not had contact with the servicer in as many as 18 months, we saw that it made sense to start building a business around being able to speak with borrowers," explained Brent Taggart, SVP, client relations. He says GRC's goal is to help borrowers find a suitable exit strategy that works for them as well as the bank or investor. "Three years ago, we began getting licenses to speak with borrowers, and now it's a growing portion of our business," Taggart explained. GRC is licensed in 49 states and the District of Columbia as a debt collector and awaits license approval in the 50th state. GRC designed its program around speaking in person with those borrowers servicers are unable to contact, sometimes even those who left the property vacant. "A lot of times servicers don't send anyone to the house," Taggart explained. "We have found that the personal touch is best." After GRC is assigned the asset, it sends an FDCPA-trained and -tested Neighborhood Home Consultant [NHC] to speak with the homeowner. "The NHCs we send are Realtors who live and work within a 5- to 10-mile radius of that particular property," Taggart explained. "They may even know the people they are sent to contact, having met them at church, school functions, or other neighborhood activities." Because of this proximity, Taggart said borrowers are more inclined to talk to the company's representatives about their mortgage situations. The purpose of the NHC's visit is to let the borrowers know there are solutions to their dilemmas. "We are genuinely interested in helping them in this difficult time," Taggart said. "We have previously talked with our clients to find out what options they may want to offer the borrower." When the NHC calls on the borrower, that person tries to determine the borrower's preferences, whether it is refinancing, loan modification, a deed-in-lieu, or a short sale. "We are interested in helping the homeowner and the bank," Taggart explained. "If the homeowner wants to stay in the house, we assist them in discussing a loan modification with our clients to see if they can qualify. If they don't have the financial ability to pay their mortgage, we offer them a short sale or deed-in-lieu and may even offer cash for cooperation in listing the property." The overall purpose of this program is to build a good relationship with borrowers and even help them find another place to live in the neighborhood if that is their desire. Taggart said GRC's program is successful largely because of the agents who represent it. "We have signed up the best of the best," he said. "We emphasize to our NHCs that loss or possible loss of a home is a difficult time in a borrower's life. It's up to us to work with our clients to help find the best possible solution for these borrowers." GRC has produced some significant results through this program; the company succeeds in achieving right-party contact with up to 65 percent of the homeowners it is assigned. Sometimes, however, Taggart says borrowers are ready to move out, bypassing the foreclosure process, which is long and tedious. In some instances, the NHC will help them find housing, and some have even helped them move out and remained friends after the move. "Our main objective is to help people stay in their homes whenever possible and help borrowers make the best decision for their family," Taggart explained. "We are here to help, and that's something we take pride in every day." An Ounce of Prevention In this age of massive foreclosures, there are few low-default success stories out there.

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