Re-performing Note: What if one spouse has lost thier
job? Since their original note amount may have been $425,000., the borrower's payment is
based on $425,000. original note. We can negotiate with the borrower and give them a permanent
or temporary payment reduction and you still earn an excellent annual yield. By
modifying their payment down to something they can afford, you have a very thankful home
borrower that is now able to make their payments on time and stay in their home. You will be helping our economy by
not foreclosing on them.
Deed-in-Lieu: What if the borrower can no longer afford any
payment because they lost most of their income? They now have a choice. They can either give
the property back to the Note holder (you) to avoid foreclosure, or they may choose to sell the property
as a short sale and move out.
Short Sale: Since you acquired the note way under current
market value, you can still make a good profit when the house is sold a short sale. You will Joint Venture with REPS
and it will be handled completely by REPS.
Foreclosure: This is the last resort. Usually a home
borrower will want to save himself from an actual foreclosure on his record (200 FICO points lost). An intelligent
borrower will choose one of the above scenarios; but a small percentage of borrowers will do nothing and you do have the legal right to foreclose if borrower does not cooperate with our other offers that we will offer
them. In a Joint Venture with REPS, this is handled completely for you and you will earn a good ROI when
we market this property as an REO or 'Corporate owned' property.
MARKETING PROPERTY FOR SALE: This is for a Non-Performing
Note, where the borrower has stopped making payments and may have even moved out. Let's assume the current property
value is now at $245,450. If we market the property at a sale price way under market price of maybe $185,000,
we most likely will get multiple bids because it is percieved as an excellent value to savvy Buyers who will jump
on it. We may get a bid over $200,000 and the new Buyer has some equity already. We wouldn't want the property
to sit on the market too long by listing it too high where it must compete along with whatever else is out
there for sale, but that is what could happen if you price it too close to current market value of similar houses
for sale. This low-pricing tactic ensures that it will sell quickly and time is money. You will be able
to recoup your original costs plus a good profit and then re-invest the money into a new Note.
We will be able to set this all up for you through a Joint Venture with REPS. Using
the Chart below, you will notice that the initial investment may have been approximately 55% of current market value, you
may have only paid about $135,000 plus a Note Acquistion fee of $6750. See Non-performing Notes to see how the
Joint Venture works to flip this note or make it a re-performing note.