Fast funding real estate investment
On the last days of March, we picked up a non-performing loan secured by a house that looked like a good investment.
What really stood out from this loan was that the loan was clearly underwater. The previous lender rejected a loan modification application. As a result, the borrowers proceeded to file for bankruptcy and discharge the debt.
No Code Violations
The property shows pride of ownership and little to no deferred maintenance. We discovered that there is no code violation in the property or in the street the property is located.
The debt was discharged in bankruptcy, but we discovered that the borrowers had paid last year’s first half taxes in March, hence another sign that they want to stay on the property.
We wrapped up the negotiations with the hedge fund that was selling this asset, wired funds and insured the house.
We sent an email to our investor list and within five days a joint venture investor funded the deal. Our Joint Venture Investor is local to the property, and he took the time to drive-by and confirm the feedback we have received from our Akron team.
We reviewed the file with a Licensed mortgage originator from our network and we think this borrower has a great chance to keep their home thru some creative exit strategies we have planned for them.
Our primary exit strategy is to get this baby back into performing, we have enough room to mod the loan. If a mod does not work we can always do with the real estate as value is in the property.
It always comes down to what the borrower wants and can do, our job is to have options that will meet both, the borrower’s needs and our financial goals.