How and when the borrower should approach the Financial Institution or Bank for One Time Settlement?
The borrower should approach the financial institution or bank for a One-Time Settlement (OTS) when they have a strong negotiating position. To secure the best OTS terms, it's essential for the borrower to gain an edge in negotiations with the lender. Lenders are generally reluctant to offer significant waivers under OTS if they can recover the full amount owed by selling mortgaged assets. Therefore, it's crucial to develop strategies that strengthen the borrower's bargaining position with the financial institution or bank.
Additionally, during periods of economic downturn, when banks are dealing with a high volume of non-performing assets (NPAs) and significant provisioning, lenders may be more inclined to consider the borrower's OTS proposal.
Once a borrower decides to pursue an OTS, it's vital to establish a professional negotiation team to successfully execute the OTS plan.