A dedicated team within Adaxio manages mortgages that have fallen into arrears. Here, the strategy is to assist the borrower in getting back to performing and preserve the home for the borrowers as much as possible. Adaxio makes every effort to avoid auction sales. If a sale is unavoidable, we work closely with the borrower to limit the loss. Many of our team have been through the credit crisis which started in 2008 and most recently the crisis arising from the Covid-19 pandemic.
Special management with a personal touch
CMIS Group does everything it can to assist our borrowers from falling into arrears. This starts with the clear and strict screening of mortgage applications. In addition, we monitor high-risk loans on a weekly basis. Once a borrower has fallen into arrears, we have phone and/or written contact within the first two, crucial weeks to find out if there are temporary or structural payment problems.
For loans that have been in arrears for two months or more, we try, together with the borrowers, to address the payment problems; this may, if possible or necessary, also be done in person. If necessary, we engage a budget coach for a higher chance of results.
At CMIS Group, we do everything we can to ensure borrowers in arrears can stay in their homes. But when payment arrangements or addressing structural payment problems are not enough, the home may still need to be sold. We want to maximize the sale proceeds and try to avoid a forced sale by auction. To this end, we carry out actions that benefit the sale and the management of the residual debt.
Adaxio has more then 10 years of experience in Special Servicing and is rated RSS2+ by FitchRating.