CT Lien Solutions Offers Tips to Financial Services Market to Weather Volatile Economic Climate.
Financial services and leasing companies must engage in proactive due diligence to adequately manage their loan portfolios and protect against debtor insolvency
NEW YORK -- CT Lien Solutions (formerly UCC Direct), the most comprehensive filing, public record search and portfolio management service provider nationwide, is encouraging financial institutions, leasing companies, and commercial finance organizations to follow some key due diligence tips in order to adequately manage their loan portfolios and protect against debtor insolvency. CT Lien Solutions is part of CT, a Wolters Kluwer business.
The large write downs and increased foreclosures experienced by many of CT Lien Solutions' clients and the market segments served have brought about the need to focus more closely on additional due diligence when managing any of their loan portfolios. Additional due diligence helps reveal hidden threats such tax liens, judgments, pending litigation and UCCs that haven't been properly indexed by the jurisdiction.
In response to today's economically volatile times and alarming foreclosure rates, the importance of thorough due diligence cannot be understated. Here are some proven tips in exercising due diligence when it comes to searching tax liens & judgments, business entity document retrieval, bankruptcy cases and more:
* When in doubt, double check for accuracy: A UCC filing is only perfected if the filer gets the name right. When the risk is high, a Corporate Name Verification search and ordering copies of a company's Articles of Incorporation and any Amendments will provide peace of mind.
* Look for tax liens & judgments: These liens ordinarily apply to the same types of property covered by UCC liens. Tax and Judgment liens are not consensual, so they can be on file without the Debtor having any knowledge of their existence--making it important to be aware and be diligent.
* Conduct court searches: Only court searches can reveal the credit risk posed by Civil Suits and Bankruptcy Cases. These open court actions threaten to encumber property being pledged as collateral and can seriously impact a debtor's solvency.
* Check for bankruptcies: Searches at the U.S. Bankruptcy Courts assist in the evaluation of a debtor's credit risk. Like pending suits, bankruptcy cases cannot be revealed in the local filing office where liens reside. However, the inclusion of a borrower's name as a petitioner in a bankruptcy proceeding is a clear red flag.
