Posted by Ken on December 03, 1998 at 12:57:34:
How do I order it?
Collecting payments on notes - Posted by Denny
Posted by Denny on December 02, 1998 at 19:06:00:
John, Based on your experience, what is the best way to collect overdue payments on notes. I have several that have slipped to 30+ days overdue. Reminders at 5 days, and the late charge and interest at 15 days has not had any effect. Phone calls are not returned or the phone is not answered. When do you call the note due or start legal action?
Firm, Fast, Furious and Friendly - Posted by John Behle
Posted by John Behle on December 03, 1998 at 12:38:06:
Take legal steps immediately. Never delay and establish your position from the very first when you buy or create a note. Let them know they will pay for your legal efforts and fees. Sounds like they are taking advantage of your generous nature.
Remember the three greatest lies. 1) The Check is in the Mail 2) I’ll respect you in the morning 3) I’m from the government and I’m here to help you.
When you give a payor space or buy into their excuses, you set in their mind that it isn’t important to pay you. In addition, you allow them to progress towards a situation where they may not be able to catch up payments. The worst part in the long run is you support them in the patterns that are the very reason for the problems in their lives.
Taking a firm stand is essential. I’ve usually found I can take a very firm stand and yet keep it friendly. At this point, you need to take that stand. At the same time, through a phone call or letter, I would encourage them to get together with you discuss how to resolve the problem.
My first call is usually to them. I take the payor to breakfast and try to find a way to resolve the problem. There are dozens of creative ways to assist them and still make a profit. When someone falls behind in payments to me - I ALWAYS PROFIT. My yield will increase while at the same time helping them out.
Foreclosures are created by lack of communication, flexibility, creativity and positioned attitudes. A foreclosure will be a very rare experience if proper collections and due-diligence are followed.
At this time, you need to take a firm stand, while also trying to create a communication link with them to discuss and resolve the problem. For more details on how to be creative and flexible to solve their problems while taking a firm legal stand, pick up my book “Getting Paid”. J.P. hasn’t listed it in the bookstore yet, but you can get it through this site for $20.