There are sellers quietly waiting for someone to help them connect the dots — not rescue them, not exploit them — but give them an option they can actually say yes to.One counter-trend worth noting: the mortgage market just posted another strong week.

It does not rescue weak ones.If this were my decision:• I would not refinance into a guaranteed loss• I would either operationally improve cash flow or exit clean and redeploy• I would not sink fresh capital just to feel better about holdingThere’s no failure here, only a decision about how disciplined you want to be going forward.A fantastic write up providing a great deal of insight.

I specialize in rescuing investors that are adventurous and bite on more than they can chew.Keep your head on a swivel.

You’re bringing ~$45K to the table on a deal where your downside risk is higher than normal.Between the LOC risk, arrears, taxes, and personal debts, you’d be injecting capital to rescue the seller, but without the security you’d normally get in return.

But yes, also to repay the $11m in sponsor funds - unlikely a preferred equity partner would be comfortable with that as well when providing rescue capital. 

The property I am on they are trying to avoid foreclosure by turning it over to a rescue fund and diluting investor's money.

There will be no path to rescue these properties, and they will all be foreclosed on by their lenders.For those tracking developments in the legal arena, I recommend following the KHCA lawsuit out of New York.

dont shop lenders when you have a good one then your good one comes to the rescue.. this is your fault end of the day..

So, even though there is protection in being right behind the debt, there is risk in the basic fact that the underlying GP needs rescue capital in the first place.  

Keep in mind folks have been doing foreclosure rescue like this for decades..