Analytic Tools Help Understand Default Scenarios.

NEWPORT BEACH, CA -- In order to avoid foreclosure lenders are using technology as an analytic tool to understand each default scenario.

Technology is driving default resolution strategies to help servicers create custom loan packages or forbearance plans for borrowers.

With numbers increasing in certain areas of the country, defaults are on every servicing agent's mind. Decision models can be used to determine the best option for the borrower such as a loan modification, a deed-in-lieu, or possibly a short sale.

In foreclosure, an attorney interface system via the Web can allow all parties involved in the default process to share images of files and important documents like copy images of the original deed.

Realizing that it can often be more cost effective to bring the borrower back into good standing rather than foreclosure on the property, companies are creating tools to re-evaluate the borrower's current standing and develop a new structure for their loan. Duke Olrich, president and chief executive officer of DRI Management Systems, says his company's loss mitigation tool provides an online analysis of foreclosure vs. other user-defined loss mitigation approaches ...