Hypocasso is an independent special servicing company with a considerable track record in special servicing. Hypocasso has the highest rating in the Netherlands in this field and, as such, belongs to the European top.
We realise that the success of Arrear management activities lies in the quality of the employees, and that is even more important than the processes and systems we apply. That's why we keep the employees we hire to a high standard (at least MBO+ level and some years of experience in the field of Credit management) and the reason why we invest above average in training, communication skills, permanent education and personal development.
Hypocasso has several departments cooperating with each other in order to achieve the best possible result for your organisation. Below we have outlined the departments that a file goes through during the various stages of late payment.
A file is submitted as soon as an arrear occurs. The Early Collections procedure is aimed at contacting a client at the first possible opportunity after a late payment occurs. In most cases, we will start handling a file a few days after the first arrear occurs. The process starts by sending out letters on behalf of your organisation. In addition, our employees will do whatever it takes to personally speak with the mortgage holder(s). We will call them on their landline and their cell phones. Also we will send them a text message or e-mail. Because we believe that the best chance for success takes place during the “Early procedure”, we have put an impressive team in place, trained to handle multiple files and to obtain maximum impact.
As soon as we have contacted the client, we will conduct an analysis. The first thing we will want to know is what the reason for late payment was. Moreover, we will query whether there is a chance that the arrear can be caught up and what the chances are of the loan being fully paid off in the future. Finally, we will take a critical look at the client's past payment behaviour. After this analysis, we will conclude whether or not we can come to an arrangement for payment or if there is anything that could help speed up the process. Depending on your needs, we will subsequently decide what the next steps should be. As a mortgage broker you might have your own tools available to assist the client in meeting his/her monthly mortgage payments. These are all matters that we can discuss with you in order to find the right package of services.
The objective of the Late Collections procedure is to structurally recover the arrears. To this end, the people at Hypocasso handling the file will remain in close contact with the client. We will thoroughly analyse the client's personal and financial situation. Based on an analysis of the client's income and expenses, we will try to reach an arrangement for payment with the client that is acceptable to all parties. Our employees have been trained to work with the client to explore how the arrear can be caught up. In our organisation we have tools available such as debtor visitation and budget coaching that we can use if the situation requires it.
Throughout the Late Collections Procedure, Hypocasso's employees will check to see whether recovery is still a realistic option. Hypocasso believes it is important for its employees to spend as much time as time necessary to handle the file. Therefore, we limit the employee's caseload so that he/she has enough time to communicate with the client and other parties involved.
Despite the fact that our employees focus on recovery, it is possible that there simply is no solution for the client's financial problems. In that case, we will discuss the option of selling the house with the client. Hypocasso stands out because of its honest and transparent communications while assisting the client throughout the process, and informing him of the consequences of the choices made during this process.
If we can get the client to agree that the best option under the circumstances is to sell the collateral, we will proceed to obtain a proxy to sell the house. To this end, we will apply the expertise of our specialised employees to gain the highest possible proceeds for the house.
Once it turns out that the payment problems are structural and we and the client have come to conclusion that the only option left is to sell the property, the file will be transferred to the team Loss Limitation (Verliesbeperking). The people on this team will proceed to do whatever is necessary to sell the property. The objective will always be to limit the loss to a minimum. If (private) sale is not an option, we will proceed to put the house up for sale in an auction.
As mentioned above, Hypocasso works with a proxy for sale if a property has to be sold. In such cases, we will contact an NVM realtor, who is active in the region where the house is located. We will ask him to present an appropriate strategy for sale and advise us on pricing and expected duration for the sale. Our experts will assess the content of his sales strategy. The employees of the Loss Limitation team have various professional backgrounds, e.g. real estate and notary services.
In consultation with the mortgage broker, it is our goal to achieve the highest possible proceeds in the shortest possible time. It goes without saying that we will take the incurring arrear into consideration. Our strategy is aimed at minimising the loss.
If the client is unwilling to cooperate, or if we or a bailiff that we have called in cannot trace the client, we will be left with no other option than to proceed with an execution auction. This means that Hypocasso will contact a notary in the region and request him to initiate an auction for sale; the house will be sold publicly.
Another option that we have at our disposal is to conduct an execution procedure if there are renters in the property who refuse to leave, or if the property is in such a poor state that it would not be worthwhile to repair it.
The proceeds of sale will be minimal if the property is auctioned. We therefore feel this should be our last resort and we will do whatever is necessary to prevent having to go down this path.
If the proceeds of the sale are not sufficient to pay off the mortgage, there will be a residual debt. This will only be the case if there is no, or insufficient coverage by the Nationale Hypotheek Garantie (National Mortgage Guarantee) or if there is no insurance in place that will pay out on the mortgage. In that case we will open a residual debt account.
Our employees will try to work with the client towards paying off the entire residual debt. Whether this can be achieved depends on the scale of the residual debt. Sometimes we are able to quickly reach an agreement with the client concerning a payment plan. In other cases we are unable to get in touch with the client and, as a result, are forced to take other measures. One option we have would be to hand the file over to a bailiff and request him to investigate what options there are to collect the funds. However, whether this is successful also depends on the scale of the residual debt and the client's personal situation.
How the residual debt is handled also depends on how matters were handled from the onset. Sometimes the file ends up with Hypocasso after an arrear of just 1 month. In that case, the entire procedure from team Early to team Loss Limitation will be completed. In other cases, the client might never have been late with payment but is now confronted with a residual debt after the sale of the house. Whatever the situation, our employees will look for an appropriate solution.
The employees at Hypocasso will provide a personalised solution that works in the situation the client finds himself in. As described, there are numerous factors in play and our employees will take every option into consideration to find the best possible solution.