A notice has arrived from a servicer.
When a notice arrives from a servicer, most people are initially surprised.
“Is this already an auction?”
“Do I have to leave my house immediately?”
“Should I call them, or is it better to say nothing?”
The language in the notice is formal, and since it includes amounts and deadlines, it is easy to feel overwhelmed the moment you read it. However, the most important thing to do first is not to rush into a reply. First, organize the information written in the notice.
There are mainly five things you want to confirm.
Who is it from?
What is the purpose of the notice?
What is the amount of the debt involved?
By when are you required to respond?
What are they asking you to do?
If you call them or proceed with sale discussions without understanding these five points, it may become difficult to organize the conditions later. Especially when considering a voluntary sale, you need to look early on at the conditions for canceling the mortgage, the deadline for a voluntary sale, and how far the auction proceedings have progressed.
A notice from a servicer is not just a communication; it is an entry point for organizing your situation.
However, just because a notice has arrived does not mean everything is over immediately. Whether there is an auction filing, whether there is still room for negotiation for a voluntary sale, or whether you can present your desire to continue living there as a condition—these depend on individual circumstances.
The important thing is to put into words early on what you want to do.
I want to sell and settle the debt.
I want to continue living here if possible.
I want to consult before my family finds out.
Since it is an entire apartment building or income-generating property, I also need to organize tenants and rent.
I want to avoid an auction at all costs.
These wishes will not necessarily be granted just by stating them. You need to transform them into conditions that creditors, servicers, and buyers can judge. It is important to lay out information such as the sale price, remaining debt, cancellation conditions, deadlines, property status, arrears in management fees or taxes, and the presence of potential buyers, and shape it into a form that can be negotiated.
Points to look at when a notice arrives are also organized in a column on our company website.
https://www.japanrealtor.jp/saiken/column/servicer-first-check/
If you have the notice in hand, first separate and check the envelope, the notice itself, the amount, the deadline, and the contact information. Do not try to provide an answer immediately; instead, look at what kind of notice it is and what is being requested.
After that, if you are considering a voluntary sale, the next thing to look at is the "deadline".
Unlike a normal sale, a voluntary sale involves the creditor's consent and conditions for canceling the mortgage. If auction proceedings are underway, time may be limited. Therefore, before deciding whether to sell, you need to confirm what must be organized and by when.
When a notice arrives from a servicer, the thing to avoid most is leaving it alone out of fear. If you ignore it, the options that might have been available to you may decrease. Conversely, if you can organize the situation at an early stage, you may retain a range of options to consider, such as selling, negotiating, the possibility of continuing to live there, or consulting with experts.
When a notice arrives, first confirm it.
Once confirmed, organize the conditions.
Once the conditions are organized, shape your wishes into a form that can be negotiated.
It is important not to break this order.
Disclaimer:
This article is intended to organize general information regarding voluntary sales, auction avoidance, and servicer correspondence. It does not guarantee the realization of a voluntary sale, auction avoidance, mortgage cancellation, leaseback, or continued residence. For individual legal judgments, registration judgments, tax judgments, and financial institution judgments, please consult with lawyers, judicial scriveners, tax accountants, financial institutions, etc.
■ About the author of this article Masayuki Tsutsumi
Representative Director, Japan Realtor Co., Ltd.
Entered the real estate industry at age 20 and is now in his 21st year dedicated to the field. Total number of completed transactions exceeds 1,000. With experience in managing and revitalizing a ryokan corporation as its representative, he is currently at the forefront of practical sales of entire income-generating properties, ryokans, and hotels, as well as voluntary sales involving servicer correspondence. He designs the organization of expertise on the web, focusing on real estate practice, AI product design, system auditing, and consensus-building support. His goal is to create a state where the representative's practical experience is clearly conveyed.
Official Website 'AI x Expertise'