The Anatomy of A Performing or Non-Performing Note

When we buy non-performing notes, there are 3 things that can occur.

  1. Modification-Requires you to try and work with the borrower to reinstate the loan as well as make up for missing past payments. This can really be challenging as you need to be understanding as well as being fair. So many borrowers have been miss treated by banks in the past.
  2. Deed-In-Lieu is really the easiest way for the borrow to get rid of his/her burden by signing over their rights to the property back to us.
  3. Foreclosure-In this case, the borrow will not cooperate and we need to foreclose to get our interest back in the property so we can put a new owner of tenant into the property.

There are many exit strategies’ available.

  1. Sell As-Is to Rehabber
  2. Rental Property
  3. Owner Finance
  4. Equity Sharing

What is Your Note Worth?