Our company has experts in due diligence, appraising, valuation, titles, title insurance, finance, tax, insurance, credit analysis, and marketing.

We analyze the collateral files, credit applications Hud-1, payment history and broker price opinions and appraisals of the collateral. We analyze the foreclosure law in the state where the collateral is located and the note and security instrument. We analyze the lien positions and check for superior liens. We negotiate the deal. We analyze the property condition, neighborhood, and demographic and economic information. We utilize a network of real estate brokers to market the real estate owned properties.

Once we acquire the note we offer several options for the homeowner or borrower.

Repayment Plan

We negotiate with the borrower to reinstate the loan if they have the capacity to do so. A homeowner may have lost their job but have a good track record and want to stay in the house. We offer repayment plans to catch up on back payments and move ahead.

Loan Modification

If the borrower demonstrates the ability to be current on their payments we are able to negotiate loan modifications. We can negotiate loan modifications in a short amount of time since we do not have the multiple layers of managers and regulations that slow the banks decision making process. Since we have purchased the note at a substantial discount we can offer a reduction in principal and a reduction in interest rate if warranted.

Short Sale

We also will offer short sales. A short sale allows the borrower to sell the property for less than the amount of the loan. Since we buy the loan at a substantial discount we can allow a short sale and still maintain a margin of profit.

Short Payoff

We also accept short payoffs whereby the borrower refinances the loan and we discount our note.

Sell Notes

Another option we have is to sell our discounted note to another investor at a profit. When we turn a nonperforming note into a performing note the note is worth more than what we paid for it.

Deed in Lieu

The borrower may want to deed the property back to us and walk away. This is called a deed in lieu whereby the borrower deeds the property back to the lender so they can avoid the foreclosure proceeding. Another term for a deed in lieu is cash for keys. This is where we offer the homeowner cash for the deed so they can find another place to live.

Foreclosure

If we can’t find a solution we are forced to foreclose. Once we have title to the property we have many options.
We can sell the property for cash
We can rent the property.
We can lease option the property.
We can sell the property and offer owner financing.