ANSWER: Not at all ...
If the home borrower stops making payments, they are in pre-foreclosure, but there are several exit strategies that
may be handled by Eagle Eyes Asset Management, Ltd (EEAM).
1. The note Investor has several different
remedies instead of foreclosure… maybe the home borrower has a temporary hardship that can be remedied.
2. First step, EEAM initially interviews the
home borrower to see where they are at financially and may offer them one or two different scenarios to avoid foreclosure.
3. The note Investor may remedy the problem
with a temporary adjustment to the payment amount. That is called a re-performing
note (loan modification).
4. Keep in mind, the note Investor only paid
55% of market value, so he will still earn a good return, just not as much. If it was 16%, maybe down to 12%... still a good
5. If modifying the payment does not help the
situation, they will be asked to cooperate with a sale of the property in exchange for not damaging their credit.
6. This makes Eagle Eyes the nice guy, too,
and once they are back on their feet financially, then Eagle Eyes may help them buy another property.
7. There is no need to be so impersonal like
the big banks; ruining the distressed home borrower’s credit and tossing them into the street.
8. No need to report it on their credit bureau,
instead the note owner can be the “Nice Guy Bank” in order to get the best cooperation.
9. If they choose to sell the property, but
cannot afford 1st and last month rent payments, EEAM will pay it for them (cash for keys).
a. They must be out by a specific date and
they must leave the premises broom clean.
b. The 1st and last month payment will be paid directly to the new landlord.