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70 consumers—and for good reason. For example, in the context of vehicle financing, the borrow- er must have proper notice of a default so they have the opportunity to cure the situation and avoid repossession of the vehicle. ese notices are also important to lenders, as they are legally mandated steps in the process of attempting to recover the collateral that secures the defaulted loan. As a result, these critical communications must be able to withstand judicial scrutiny. When a foreclosure is challenged in court, the best-case scenario is that the borrower has accepted the notice sent by his or her lender using certified mail with return receipt (green card), because that method of mailing provides absolute proof that the borrower has been com- municated with. A "wet" signature on a green card is indisputable. However, recipients will often refuse a foreclosure-related piece of certi- fied mail, thinking the problem will go away if they do not physically accept the letter—this is commonly known as "hiding out" behavior. No matter what happens once the certified mail is dispatched, the burden of proof in every case rests with the sender. If a delinquent borrower is hiding out, so to speak, there is a specific legal process to fol- low in order to foreclose, and understanding the nuances of certified mail becomes a top priority. RETURNED TO SENDER In court, a frequently overlooked part of the mailing process often rises to the surface and becomes a focal point of the case: Returned mail. Statistically, out of the millions of pieces of certified mail that are processed, about half come back unclaimed. ere are two predominant reasons why certified mail goes unclaimed. First, when a pick-up notice is left in the borrower's mailbox, indicating there is a certified mail letter from their lender waiting for them at the post office, the borrower might shy away—the aforementioned "hiding out." e second most common reason for unclaimed certified mail is that the borrower no longer resides at the residence, known in postal jargon as "addressee unknown." An educated observer can learn a lot about what actually happened with an unclaimed mail piece by examining the envelope and reviewing the steps that were followed after it was rejected by the recipient or undelivered for some other reason. For example, there was a case a number of years ago that involved a borrower who proved that he was home on the day that the mail carrier was supposed to have presented the certified mail notification at the door, but claimed to have never received it. at day, three little hand-written words—"dog in yard"—made the difference, and led to a suc- cessful defense. As it turned out, the mail carrier had spotted a menacing dog in the front yard and made a note on the mail piece about the dog. Additionally, the mail carrier indicated on the piece that there was a notice left in the mailbox instructing the recipient when to pick it up at the post office. During testimony it was found that the borrower kept a pit bull in the yard, and the case was settled favorably for the defendant. It is important to understand that the borrower's attorneys will seek out and exploit any technical fault in the mailing and delivery process in order to create reasonable doubt. For this reason, it is crucial that the sender can prove they mailed the notice on the day they claim and be able to demonstrate that the US Postal Service followed its explicit procedures to make every attempt to deliver the certified mail. Finally, diligence is required in tracking and inventory- ing returned mail so that it is easily accessible in the event of a legal challenge in future years. KNOW THE USPS More than ever, mortgagees, foreclosure attorneys, and trustees must do everything possible to ensure that their data matches the actual information notated on the envelope by the mail carrier. Likewise, any proof that notices were placed in the mail must also be carefully documented and accurate. Certain steps in the process require thor- ough documentation and long-term consis- tency, while others involve a simple choice. For example, some servicers are electing to use the Postal Service's less expensive alternative to the traditional green card, known as return receipt electronic (RRE). While RRE does offer an attractive discount, it doesn't provide certain features that are applicable to the mortgage and vehicle finance industries. e lack of these features has made it problematic, and RRE doesn't always hold up in court, because the data required to fulfill the typical burden of proof is frequently incomplete. is is why us- ing RRE is not recommend if the sender needs court-admissible proof of delivery in every instance. Highly regulated industries, such as financial services, typically operate under strict requirements regarding communication with consumers— and for good reason."

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