Exit strategies in non performing notes

Once we acquire a nonperforming note, we reach out to the borrower and assess the borrower's situation, so we can identify the most likely exit strategies that will fit the case.

Our typical exit strategies are

1. Reinstatement: The borrower starts making their monthly payment and the past due installments are deferred.

2. Loan modification: Interest, or maturity of the loan are modified to change monthly payment.

3. Refinance: The borrower refinances his loan with an FHA loan or regular loan cashing us out.

4. Hardest Hit funds: We help the borrower receive assistance from government programs that help pay past due balance.

5. Short sale: Borrower finds a buyer for the house at a price that is less than the loan balance (UPB), we authorize the sale and we relinquish the insufficiency balance.

6. Deed in lieu: We offer moving out cash to the borrower and he signs the deed over to us. The debt is relinquished.

7. Foreclosure: We foreclose on the property and evict the borrower. This is our last resort measure and takes care of subordinate liens.