What We Do
We work with banks to buy their non-performing mortgage loans. We are able to then approach the homeowner and work out a payment plan with them that works for their budget. We look out for the homeowner and their financial well-being providing them with an opportunity to save their home from foreclosure.
We do foreclose if the homeowner is uncooperative or non-responsive to our direct communications with them. Foreclosure is the last resort. We rely on our professional network of foreclosure attorneys to carry out this procedure. We encourage our borrowers to get in touch with us immediately if they have been ignoring the foreclosure notices before it is too late to save their home.
At this point the property is sold at the county steps to the highest bidder. If nobody bids, the property goes back to us, the lender, as an REO.
What Makes Us Different
We strive to be transparent will all the people we serve. We strive to work with all parties involved to reach a mutually beneficial win-win-win solution. In the note business there are three primary stakeholders: the banks, the homeowners, and us - the note investors. We are the relay in between all the parties. We buy the homeowner's note at a discount from the bank or other previous lending institution. We then work with the homeowner to reach an affordable payment plan.
Our private equity investors get a preferred return on their investment. We pay our investors first and then we collect the rest for putting the deal together.
Our Business Model
1st we buy a note or a pool of notes from a lender at a discount.
2nd we contact the borrower, explain that we are their new bank and proceed to negotiate one of the following strategies.
Exit Strategies We Use:
Loan modification - we ask borrower to start making payments again; we may lower their monthly payment based on what they can afford to pay
Deed-in-lieu (of foreclosure) - if the homeowner cannot make the payments, we ask them to sign over the deed to us and we become the new property owner
Cash for keys - we give the owner a small lump sum payment and ask the owner to move out (this exit strategy works best if homeowner has a tenant living in the property and tenant is not paying)
Approve a short sale - much quicker approval than a traditional bank since we can afford to allow the homeowner to walk in an under-water situation (loan balance is greater than the property's fair market value)
Foreclosure - this is our last resort if all other negotiations fail and/or homeowner cannot afford their mortgage payment (even a lowered one)
Sell the REO or property quickly after foreclosure or receiving the Deed