Redefining Foreclosure Recovery: With A Data-Driven Model

Foreclosure is never an easy path for either lender or borrower, but it is sometimes a necessary one. At Chase, this difficult process had long been left to subservicers, who navigated a maze of decisions—whether to push forward with a short sale, take a property to auction, or convert it into a real estate-owned (REO) asset. For years, this complex journey operated on instinct and outdated frameworks, which often resulted in less-than-optimal outcomes. Enter Harshita, a leader with a keen eye for strategy and a deep understanding of data-driven decision-making.

Faced with the challenge of safeguarding Chase’s interests while also considering customer outcomes, Harshita set out to create a solution that would bring clarity and precision to the foreclosure process. The task was immense: develop a framework that could cut through the noise, accurately assess the multitude of factors involved, and guide Chase toward the best possible outcomes.

Crafting a Foreclosure Haircut Model for Strategic Insight

Harshita didn’t just want to tweak the existing process—she aimed to revolutionize it. She envisioned a sophisticated tool that would provide deep insights into the equity of distressed loans and guide every critical decision in the foreclosure process. Her mission was clear: build a Foreclosure Haircut Model that could analyze each property on an individual loan level, leveraging historical data to predict outcomes and optimize strategies.

Her model would do more than just crunch numbers. It would offer a clear picture of the potential recovery from each foreclosure, allowing Chase to make informed, strategic decisions and appropriate oversight—whether that meant proceeding with a foreclosure auction, converting to REO, or exploring other recovery paths. With a focus on equity analysis and present value estimates, this model would become the backbone of Chase's foreclosure strategy.

Transforming Chase’s Foreclosure Strategy

The results of Harshita’s efforts were transformative. With the Foreclosure Haircut Model in place, Chase gained the ability to see the full picture of each distressed loan, no longer relying on gut instinct or outdated methodologies. Her model provided clear, data-driven insights that empowered the bank to make smarter, more strategic decisions. This shift didn’t just improve bid realizations at auctions—it fundamentally changed how Chase approached foreclosure recovery.

By optimizing resources and making more informed decisions, Chase was able to maximize recovery rates while maintaining a focus on balanced outcomes. Harshita’s work proved that even in a challenging environment like foreclosure, there’s room for innovation and improvement. Her model set a new standard at Chase, one where strategic oversight and data-driven decisions lead to better results for everyone involved.

About Harshita

Harshita is a strategic thinker and an innovator in financial services, with a knack for turning complex challenges into opportunities for growth. Her leadership at Chase, particularly in the development of the Foreclosure Haircut Model, showcases her ability to harness data for strategic advantage. Through her work, she has consistently driven improvements in risk management and resource optimization, setting new standards in the industry.