What steps does SCP take when a borrower defaults?
If a borrower fails to meet their repayment obligations, Southern Cross Partners follows a structured process to protect investor interests:
- Immediate Action: We contact the borrower to understand the situation and seek a resolution.
- Default Interest: Additional default interest is applied to the loan, -
- Formal Enforcement: If the borrower cannot remedy the default, we issue a Property Law Act (PLA) notice, giving them a set timeframe to comply.
- Mortgagee Sale: If the borrower still does not meet obligations, we proceed with enforcement, which may include selling the property under mortgagee sale provisions.