From Probate to Profit: Robert Forster’s Legal Insights

Host: Gina Gallutia

Episode Title: From Probate to Profit: Robert Forster’s Legal Insights

Duration: Approximately 9 minutes and 13 seconds

Description:
In this episode of MP Access, we’re joined by Robert Forster of BDF Law Group, recorded live from the Velocity Conference. Robert breaks down the growing complexity of today’s mortgage and foreclosure environment, from rising default rates to the intersection of probate and real estate. He shares insights from his popular conference class, "From Probate to Profit," emphasizing how real estate professionals can expand into probate work and how crucial proactive communication is for distressed borrowers. With over 20 years of legal experience, Robert offers grounded, actionable advice for agents, attorneys, and industry professionals facing market volatility.

Key Topics:

• Why foreclosure inventory is rising despite post-COVID programs
• The risks of borrower inaction and how communication can help
• Preparing for a chaotic and cyclical industry environment
• How probate intersects with real estate and title issues
• The importance of asking questions and building relationships in legal matters

Resources & Links:

• MortgagePoint Magazine
• Contact Us

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Transcript

Hello, welcome. I am here with Robert Forester from BDF law Group at velocity, and we're just going to have a quick chit chat about the class that he just taught from probate to profit, as well as kind of what he's seeing in the industry. So Robert, tell us, let's start with what are you kind of seeing. You know, we've seen a lot of shifts over the last couple of years, and we've had a lot of administrative changes in the last month or so.

So what are you seeing in the industry right now? Indeed. Well, one thing I'm seeing is, is chaos, right? But chaos has become the normal fare, especially since Covid right here. Obviously, defaults seem to be up. You have moratoria, specifically the VA being lifted at the beginning of the year, so foreclosure inventory is up. Another interesting thing we're seeing is, you know, expiration of a lot of the last minute programs.

And we're even and it's unbelievable and truly sad to see, but we're seeing re defaults on loans that were recast at during Covid. So, you know, taking a loan, going out 40 years and seeing relief. So really to to most specifically answer your question we're seeing more defaults. And unfortunately for a lot of the borrowers in those situations, they don't have as many tools available to them at the lows to start looking.

Yeah. What is the kind of like if you were talking to someone on that side about where would you send them for resources and information communication? Okay. And obviously that's a very cliche word, but communicating with your servicer, because the servicers have been provided with a plethora of options of it. Right. And as you know, we both been in this industry a long time and know a lot of them personally.

And they generally want to do the right thing. It's very, very rare in my experience. And I've been doing this 20 years now, which I cannot. He started when you were 12 year or 52. But, the only time I'm seeing people really get into dire straits where they can't get out is when they fail to communicate, right?

Absolutely. And they're either reaching out last minute for the first time. Right? Or not at all. And not at all, obviously, is the worst thing they can do. So to any of these, debtors in these situations, please communicate with your service. And we as the attorney networks who represent the servicers, all have direct lines to the servicers and can get them in touch with the right person who can help salvage their situation.

Okay. That's good advice. That's good advice. I think that sometimes folks who are in that they get paralysis, you know, of fear and what's happening in my home and that kind of thing. So and not always knowing where to go or what to do. So that's good advice. What what advice would you give to folks who are working in the industry right now in terms of preparation, preparing for chaos, dealing with chaos, any of that?

Yes. Buckle up. And maybe a five point harness. I don't know if that's a good thing or a bad thing, but yeah, I like in this industry after, you know, like I said, almost two decades in it now. To being on a roller coaster because there are always ups and downs, right? We're either going to ride high, we're going to ride low.

But there really does seem to be a norm or a slow period. It's very similar to, you know, of course, we're here in Texas, so I think most of us know people who work in oil and gas, which is extremely volatile. Yes. I liken our industry to people who are not in it, oftentimes to oil and gas.

With the ups and downs. But at the same time, all that being said, ups and downs, foreclosure, mature moratoria or increasing, referrals on the foreclosure side and defaults. The business is still here and all the companies are still there. All the law firms are there, the services are there. Everybody's doing their best efforts. So I would definitely say, hang in there, hang in there.

Buckle up. Good. All right. So you just taught a class on from probate to profit. And it's for realtors and agents and brokers in the REO area. And just kind of teaching them how they have transferable skills from that to probate. Correct. So it was it was a great class. And I'm not exaggerating when I say that may have been the most interactive class or session I've ever had.

And I'd be lying if I said every person on there didn't ask at least one question, which, of course, as a presenter, you know, it's very cliche to say I want it to be interactive, but it truly was interactive, which is great. And, you know, I tried to stay very high level with the probate because probate, like anything in the law, can get extremely dry if you start calling on statutes and reciting things like that.

But you know, the back and forth and kind of camaraderie we were able to get together. Allowed me to not do that. Furthermore, I was able to kind of put it in terms from their world and give them tips and specifically some templates, legal templates, names that would be able to help them in their specific situations. So I truly think it was beneficial for them, and I guess only time will tell.

But the feedback was very positive and I I'd do it again tomorrow if I could. So for folks watching and listening, what's the one kind of big takeaway you give them in terms of probate and how that's an area of opportunity, probate. In the in the real estate world in which we live, where there's defaults and whatnot, probate is not just a legal issue, it's also a title issue.

Yes, it is. And, that was obviously something we talked about ad nauseum in there because people oftentimes, depending upon which side of the spectrum you live in or work in, you billable at one, but it's not the other. It's the perfect confluence of both. And it requires not only specialist at what they do, but people who are cooperating with.

In my instance, I'm an attorney on the title side, right. Working with the underwriters, learning what they need because, it's very nuanced. But also, you know, you got to use your resources and ultimately do what's best for the client, right? Absolutely. Okay. All right. So the confluence of probate and title. Yeah. And you got to know both and you got to know who to go to.

Yep. So if you are an agent who is kind of eking into that or has been presented one with one of those who are your best friends, who are your best sources for information? That's a great question. I get well, for example, in our class, I gave everyone my email address, right? So they can reach out to me and use me as a resource.

And I think to put your we're all we're all proud, right? We're all just natural, proud people and want to do things ourselves. But, you know, swallow that pride a little bit. There's no such thing as a stupid question. I think that the best thing and that I've learned, at least in my career and doing this, is knowing, admitting, being able to accept that, admit what I don't, yes, is so much more beneficial than spinning my tail and wasting time and potentially doing what's worst and hurting my clients, right?

So just going out and asking ask a question. Yeah, I love that. Not being afraid. Absolutely. Being hungry. Yes. You have to swallow yourself a little bit. Yes, I said yes. But as you've seen it does not work for everyone. Yep. Absolutely. Awesome. So in terms of the title aspect, would you say finding a good attorney like someone from legally like you for that aspect as well?

Yeah, I think, for example, obviously in Legal League we have, excellent practitioners across pretty much all 50 states. Right. So I think it would be as simple as, you know, looking in black book or the, the Register or anything like that, figuring out which state your name's in and reaching out. Because, I mean, I know basically all of them personally and they're much like myself.

They want to do what's best for people, right? We all do. It's just human nature. And ultimately, if it's best for them, what comes around goes around, and hopefully, they can return the favor. You never know. I mean, like most industries, I think some people forget it's relational, not transactional. Right? To be successful in this industry, in most industries, but definitely this one.

That's what I've seen a lot. And the people who are successful are the ones who build those relationships. Absolutely. And are willing to go out there, ask that question and ask for that help then, and provide it in return. And that was because I certainly don't know the answer to everything. But for the most part, I know someone who does.

Yeah, right. And that's why it kind of goes back to your previous question. Just ask if we can help you out. Yeah for sure. I love that. Well, thank you so much for coming in, teaching the class and for taking time to do this with us and to chat with people who weren't able to make it. And thanks.

Thank you for having me. It's been a blast.